MacEwen runs the numbers on Am Law 100
Yup, the rich really are getting richer, says Bruce MacEwen.
The blogger of Adam Smith, Esq., spent yesterday running the numbers in year-over-year comparisons of revenue growth for The American Lawyer magazine's annual report.
Here's what he found: "So what do we see? I would argue: Striking visual evidence that the hypothesis is correct. For each of the three series, the rate of increase in revenue is higher for larger firms than for smaller ..." I performed one other test. Using Excel's "forecast" function, which extrapolates a series out to a future data point, I asked what revenue growth would look like for AmLaw firm #200, and these are the almost shocking results:
- Based on an extrapolation of the 2004 vs. 2003 series, firm #200 would have revenue "growth" of -7.18%. (Yes, that's a minus sign.)
- Equally damning, based on an extrapolation of the two-year series (2004 vs. 2002), that same firm would scarcely enjoy any net revenue growth at all for the two years: Specifically, a charitable-to-call-it-anemic 0.12%.
"I anticipate copious emails from the incredulous, the triumphant, and the Ph.D. statisticians."
For an explanation of this graphic and MacEwen's methodology, click here.
Posted by Laurel Newby on June 30, 2005 at 03:09 PM | Permalink
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