0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Can the margin of safety ever be negative?
yes it can be negative.
Can a profit margin ratio be negative?
A profit margin can be negative if the company had a negative net income. For eample if the company had $100,000 in net sales, but their net income was ($10,000) then (10,000)/100,000 = (10%) or negative 10%.
What does Margin Balance mean?
A positive margin balance is the amount owed to you by the brokerage. A negative margin balance is the amount owed to the brokerage by you.
What is it called when Sales can decline before losses are incurred?
margin of safety
What does a times interest earned ratio indicate?
the margin of safety provided to creditors
Can the margin of safety ever be negative?
yes it can be negative.
What is margin of safety ratio?
Margin of safety ratio = margin of safety/sales revenue
Profit margin formula?
Contribution of margin safety x margin of safety
If Hartman Co has fixed costs of 36000 and a contribution margin ration of 24 percent If expected sales are 200000 what is the margin of safety as a percent to sale?
First you need to find the break even sales. Break even sales = fixed expenses/ CM ratio Break even sales = 3600/.24 = 15,000 Then find the margin of safety dollars. margin of safety dollars = budgeted sales - break even sales margin of satefy dollars = 200,000 - 15,000 = 185,000 Then you can find the margin of safety percent Margin of safety percent = margin of safety dollars/ budgeted sales dollars margin of safey percent = 185,000/200,000 = 92.5%
How do you calculate the margin of safety?
total sales - breakeven= marginal of safety
What is a margin of safety as well as how it can help minimize risk. Use examples in your explanation.?
Margin of safety is the difference between the intrinsic value of a stock and its market price. To have a margin of safety, one must manage one's financial needs thriftily.
Explain what a margin of safety is as well as how it can help minimize risk Use examples in your explanation?
Margin of safety is the difference between the intrinsic value of a stock and its market price. To have a margin of safety, one must manage one's financial needs thriftily.
What does it mean to have a margin of safety?
Time and Space
What is the meaning of safety margin?
Margin of safety is the margin of units of expected sales and break even sales before which company actually start bearing lossformula for margin of safety: actual sales - break even salesFormula for margin of safety ratio : (expected sales - break even sales)/break even salesThe first preventive measures (or) steps taken before an accident (or) incident happens is the margin of safety. The following can be factors that can help increase safety:personal protective gearsemergency equipmentsemergency traininghealth and safety awarenesshealth and safety traininghealth and safety posters/signssafety guidelines complianceAccountingThe margin of safety (in break-even analysis) as regards accounting matters speaks to how much production output or sales levels can fall before a break-even point (BEP) is reached. (At that point profit disappears; it goes to zero.) The margin of safety is calculated like this:Margin of safety = ((Budgeted sales - break-even sales) /Budgeted sales) x 100%FinancialIn finance, the margin of safety is the difference between the intrinsic value of a stock and its current market price.EngineeringThe margin of safety (factor of safety) in engineering is the difference between the strength (of a structure) as designed and built and and the "minimum requirements" (for that structure) under its maximum stress. This "difference" will be expressed as a fraction in most cases, but can be a multiplier in other engineering applications.A link is provided below. The link will provide more information on all these applications of the term. Once you get to the Wikipedia post (to which the link will take you), you can then pick up the link to the specific application you wish to investigate.Margin of safety (financial) in a financial context.
Can a profit margin ratio be negative?
A profit margin can be negative if the company had a negative net income. For eample if the company had $100,000 in net sales, but their net income was ($10,000) then (10,000)/100,000 = (10%) or negative 10%.
What does Margin Balance mean?
A positive margin balance is the amount owed to you by the brokerage. A negative margin balance is the amount owed to the brokerage by you.
What are the release dates for Suspense - 1949 Margin for Safety 3-27?
Suspense - 1949 Margin for Safety 3-27 was released on: USA: 27 February 1951
