There are many routes to earnings growth. With GE HealthCare Technologies (NASDAQ: GEHC), it comes down to a combination of mid-single-digit percentage revenue growth and margin expansion. Over the medium term, management expects adjusted earnings before interest and taxation (EBIT) margin to move to "high teens to 20%", from 15.6% in 2022. A 300 to 500 basis points (bps) growth in operating margin is a compelling case, and there's reason to feel confident that the company can reach its aims.

To illustrate the significance of the targets, let's consider the improvement in EBIT implied by a combination of 5% revenue growth and hitting a 20% EBIT margin over the next five years. These figures imply a 64% increase in EBIT, so if GE HealthCare merely continues to trade at the same price-to-EBIT multiple it carries now, that implies a 64% return over the five-year period or a return of  about 10% per annum.

At the JPMorgan Healthcare conference in January, management laid out three components that will aid its margin expansion plans:

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Source Fool.com