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The limitations for the profit margin ratio is in comparing different industries. Profit margins between say a supermarket and an aircraft manufacturer would vary considerably.
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How do you calculate a profit margin ratio?
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
Inventory turnover ratio affect profit margin?
yes
What is the asset turnover ratio if the profit margin is 5 percent and the return on assets is 13.5 percent?
ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%
Which two ratio are used in DuPont system to create return on assets?
Return on Assets = Profit Margin X Asset Turnover
What is meant by the term contribution margin ratio?
The term contribution margin ratio is the percentage of contribution over total revenue. It is used in cost-volume-profit analysis, a form of management accounting.
How do you calculate a profit margin ratio?
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
How do you calculate profit margin ratio?
net profit/sales
profit margin?
it is also known as net profit margin. this ratio shows how much net income a company earns from operations. a higher ratio implies higher profit earned. profit margin is calculated as follows:profit margin = (Net income / Revenue) * 100
How do you calculate gross margin ratio?
gross margin ratio is calculated as >GROSS PROFIT/NET SALES
What is the profit margin if the asset turnover ratio is 3 time and the return on asset is .1?
Return on Assets = Profit Margin on Sales x Asset Turnover .1 = Profit Margin on Sales x 3 .033 = Profit Margin on Sales
Inventory turnover ratio affect profit margin?
yes
What is profit margin ratio?
net income divided by sales
Formula for net profit ratio?
Net Profit Margin = Net Profit/ Sales Revenue X 100
What is the asset turnover ratio if the profit margin is 5 percent and the return on assets is 13.5 percent?
ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%
What is the formula for profitability ratio?
profit margin = net income / total revenue
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.
Which two ratio are used in DuPont system to create return on assets?
Return on Assets = Profit Margin X Asset Turnover
