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How does Sales growth decrease the value of a profitable company?

Explain how it's possible for sales growth to decrease the value of a profitable company.


What is more profitable high contribution margin ratio or low?

Higher. It's your TR minus your Variable Costs over sales. So if you have a higher revenues coupled with low costs, you will have a higher contribution margin and more profitable.


Why we need sales?

Sales create revenue and positive cash flow for a company. All companies must eventually have sales to be profitable. Sales are the driving force of revenue for an entity that has obligatory finances to be taken care of. More sales means(Well Profitable sales) sales that are over the monetary cost of the product or service are needed to pay overhead or operating costs. Please ask more intelligent questions!! Are you over 13 yrs. old?


Why is sales promotion important?

Sales promotion important as it creates awareness for a product or service. This will usually result into higher sales and profits for the company.


Why is Meeting incentive conferences and events important?

They are important to keep your sales associates on track for reaching goals and increasing sales to keep the company profitable and prosperous. They are good to have on at least on a quarterly basis, if not monthly.


Who is the industry leader in distilled spirits?

Diageo Plc was the world's leading and most profitable wine and spirits company, with 2002 sales of $17.2 billion and a reported 91 million cases in sales in 2000


What is the difference between profitable advertisement and a non profitable advertisement?

A profitable advertisement will have brought you or your company sales leads and contacts with an ROI to compensate for the cost of the advertisement creation and placement. An unprofitable advertisement may have either been too costly to create in the first place or poorly created and/or placed to where the costs will not be met to break even or not enough results to bring in the required sales for a positive ROI.


What is the difference between sales executive and sales officer?

The difference between a sales executive and sales officer will depend upon the company. Most times, a sales executive will have a higher position than a sales officer.


Profit margin ratio?

Profit margin is a ratio of probability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every ringgit of sales a company actually keeps in earnings. Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its cost compare to its competitors.


What does not always increase a company's market value?

increase in the growth rate of sales


How can a company turn online leads into sales?

It is actually quite simple for a company to turn online leads into sales. Online leads are leads that come from people who are showing an interest in the product that is offered. If the leads are properly followed up by a qualified salesperson these leads should become profitable.


What is the most profitable industry in the world?

Weapons/military sales