I believe I've made my point, several times in the past, where it is very important for an industrial type company to have as much as possible of its Top Line Revenue to end up at its Bottom Line.
Therefore, in terms of the Book Value (BV) that you refer to, that number is of paramount importance because it contributes to the positive increase on the Balance Sheet, within "Retained Income", from where that BV is calculated, based on the basic Balance Sheet equation of :-
Share Capital + Retained Income = Total Assets - Total Liabilities
If "Share Capital" remains constant, then it's only Retained Income, via the addition of Bottom Line, less any Dividend, that can positively increase the Balance Sheet.
Therefore the fewer the cost deductions as one works down the Income Statement the better, I would think ....
So if 90% of a company's Top Line Revenue has been swallowed up by the time one gets to the EBITDA level, then that doesn't leave much over for further cost deductions, such as interest expense, taxation, etc....
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