ASR in FT Unhedged: why small caps suffer margin contraction first

Beth McCann

12th MAY 2022

In a discussion on margins with Robert Armstrong of FT Unhedged, Ian Harnett noted reasons why smaller companies generally suffer margin contraction first.

Small caps “have fewer levers to pull to maintain profitability when inflation rises and competition starts to heat up”. 

Operating margins at the large-cap S&P 500 and the small-cap S&P 600 show that “for the little guys, margins returned to pre-pandemic levels this quarter”



To read the full column click HERE (FT subscription may be required) 


Clients can access ASR’s latest research on margins HERE 

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