firm size employees and profitability in us manufacturing industries fred r kaen whittemore school of business economics university new hampshire durham nh 03824 usa unh edu phone 603 862 3354 hans baumann hb services partners llc 32 pine street rye 03870 january 13 2003 preliminary do not quote keywords financial statement analysis jel classification g30 abstract we examine the relation between for sixty four 1990 2001 use three measures earnings before interest taxes depreciation amortization as a percent sales ebitda margin ebit total assets ta our measure is natural log number find following about half increases at decreasing rate eventually declines firms become larger remaining no relationship exists given level with fewer exhibit greater