# Driver (Profit, Revenue, Growth)

The first bottom table: which parts of the business drive profit or revenue, or how its main lines are growing.

## Definition

Driver shows three rows and four columns: a first figure, its Trend, a third figure and one comparison with the company. Where the company reports earnings by segment, it is Profit by segment: each segment's share of profit, a Trend of the profit share, the segment's share of revenue and Rel margin (the profit share over the revenue share). Where only segment revenue is reported, it is Revenue by segment: revenue share, its Trend, the segment's growth rate (up to ten years; the heading says how many, for example 7Y CAGR) and Rel growth. With no usable segments it is Growth vs revenue: the latest amount of three lines, a Trend of the amount, the growth rate and Rel growth. In every Driver table the Trend charts the first column. When a company's segments are only reported up to an earlier year than the main table's newest, the title names that year (for example Revenue by segment FY25).

## Why it matters

A segment that earns 60% of profit on 30% of revenue is the business; one that is half the sales but a tenth of the profit is not. Revenue shares alone hide that.

## How Standard Equity uses it

We use profit only when matched segment earnings cover at least 80% of segment revenue, and we roll subtotals into one row (Berkshire's insurance units are one "Insurance" row). Segments that lose money now are not rows. In the Trend, a year a shown segment lost money is a negative bar, measured against that year's profit-making segments. When the profit figures lag the segments by a year we show revenue instead. The growth lines differ by company type. General companies and REITs: revenue, cost of revenue and operating expenses (a REIT with no cost of revenue shows two rows). Banks and brokers: total assets, revenue and non-interest expense (or operating costs, derived from revenue less provisions and pre-tax profit when not reported). Insurers: revenue, claims and benefits, and total costs (revenue less pre-tax profit). Corporate and elimination lines are never shown.

## The metric

| Category | Breakdown Tables |
| -------- | ---------------- |
| Unit     | %                |

[← Back to glossary](https://standard-equity.report/glossary)