PROFIT MARGIN RATIOS

Profit Margin Ratios

Profit Margin Analysis

Cover all the ratios that compare the profits of a period with certain items in the Income Statement and Balance. Their results materialize efficiency in the management of the company, i.e. how managers have used their resources, provide more complete answers about how effectively the company is being managed. For these reasons, management should ensure the performance of these indices, because while larger its results, the greater the prosperity for it.

Net Profit Margin

Net Profit Margin or Return on revenue indicates how much benefit is gained for each dollar of sale, in other words, how much the company ...