a. Gross Profit MarginGross Profit/Sales XXXXXXXXXX)/107100064.71%This ratio indicate that companys earns a gross profit of 64.71% on its sales. Which is a good number compared to othersb. Operating Profit MarginOperating Profit/Sales XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX)/107100032.88%This ratio indicates that company earns a 32.88% of operating profit on its sales.c. Net Margin= Net Income/Sales XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX25200)/107100018.09%The net profit margin, also known as net margin, indicates how much net income a company makes with total sales achieved. A higher net profit margin means that a company is more efficient at converting sales into actual profit.d. return on assets=net income/total assets XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX25200)/23270008.33%The return on assets ratio measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits.It only makes sense that a higher ratio is more favorable to investors because it shows that the company is more effectively managing its assets to produce greater amounts of net income. A positive ROA ratio usually indicates an upward profit trend as well.e. return on equity =Net Income/Shareholders Equity XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX25200)/ XXXXXXXXXX)11.81%Return on equity measures how efficiently a firm can use the money from shareholders to generate profits and grow the company.ROE is a profitability ratio from the investor's point of view—not the company.investors want...
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here