All of the following statements regarding profit margin is true except
A: Profit margin reflects the percent of profit in each dollar of revenue.
B: Profit margin is also called return on sales.
C: Profit margin can be used to compare a firm's performance to its competitors.
D: Profit margin is calculated by dividing net income by net sales.
E: Profit margin is not a useful measure of a company’s operating results.
A: Profit margin reflects the percent of profit in each dollar of revenue.
B: Profit margin is also called return on sales.
C: Profit margin can be used to compare a firm's performance to its competitors.
D: Profit margin is calculated by dividing net income by net sales.
E: Profit margin is not a useful measure of a company’s operating results.
举一反三
- A company has the following summarised SOPL for the year. $Sales revenue 70,000 cost of sales (42,000)Goss profit 28,000expenses (21,000)Net profit 7,000 What is the company's gross profit margin for the year? A: 10% B: 40% C: 25% D: 17%
- The gross profit percentage is calculated as: A: cost of goods sold divided by net sales revenue. B: net sales revenue minus gross profit on sales. C: net sales revenue minus cost of goods sold. D: gross profit divided by net sales revenue.
- Fresno Salads has current sales of $6,000 and a profit margin (net income/sales) of 6.5 percent. The firm estimates that sales will increase by 4 percent next year and that all costs will vary in direct relationship to sales. What is the pro forma net income?
- The core indicator of DuPont's financial analysis system is ( ). A: Total asset turnover B: Return on net assets C: Profit margin on sales D: Cost margin
- The Dupont analysis method starts from the net interest rate of<br/>equity and decomposing layer by layer into the product of ( ). A: Net interest rate on assets B: Equity multiplier C: Operating<br/>profit margin D: Net profit margin on sales E: Asset turnover<br/>The