Seems like their policies are about as successful as "Precision Scheduled Railroading" is in the world of Class 1 North American railroads.
Over there in that industry, Wall Street is solely focused on one statistic called the operating ratio (the percentage of each dollar earned that the company had to spend to earn said dollar).
Thus when the disease known as PSR strikes after a hostile takeover by "activists investors" like an investment fund, it quickly becomes all about cutting the company to the bone to up the profit margin. Then they can sell at a big markup before the negative long-term consequences strike like from deferred maintenance of infrastructure.
I've heard tales of turning away billion dollar contracts because they were forecast to show a 70% operating ratio that would up the company's 55% operating ratio. Imagine turning away 300 million in profit over such silliness.
This appears to be the same sort of disease that Microsoft's gaming division is now facing.
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Re: This Is Why Xbox Is Bringing All of Its Games to PS5 Now
Seems like their policies are about as successful as "Precision Scheduled Railroading" is in the world of Class 1 North American railroads.
Over there in that industry, Wall Street is solely focused on one statistic called the operating ratio (the percentage of each dollar earned that the company had to spend to earn said dollar).
Thus when the disease known as PSR strikes after a hostile takeover by "activists investors" like an investment fund, it quickly becomes all about cutting the company to the bone to up the profit margin. Then they can sell at a big markup before the negative long-term consequences strike like from deferred maintenance of infrastructure.
I've heard tales of turning away billion dollar contracts because they were forecast to show a 70% operating ratio that would up the company's 55% operating ratio. Imagine turning away 300 million in profit over such silliness.
This appears to be the same sort of disease that Microsoft's gaming division is now facing.