Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
a) Gross profit = $500,000 and Expenses = $100,000 for Year 2.
b) Year 2 GPM = $500k / $1,000k = 50.0%
Year 1 GPM = $400k / $850k = 47.05%
Year 2 NPM = $400k / $1,000k = 40.0%
Year 1 NPM = $360k / $850k = 42.35%
The Year 2 GPM figure shows that for every $100 of sales, $50 is gross profit. The Year 2 NPM figures prove that for each $100 sold, $40 is generated as net profit. While the GPM has improved, NPM (the relatively more important figure for profitability) has declined; due to the large increase in expenses from $90K to $100,000 (11.1% increase). Overall, these figures show healthy profitability at JKL Ltd, although barely limited information is provided.
c) Definition of profitability (not profit): Profitability ratios examine the profit of a firm in relation to other figures, such as sales returns in order to assess the monetary performance of the business. Further information might include: forecast profits and sales figures; or the amount of capital invested in the firm. Other information could include the analysis-off and use:
What is the Price earnings (PE) ratio PE = Market share price/EPS (no. of times) PE ratio is the most widely quoted investors 'ratio. It demonstrates market confidence in a
What is the role of a broker in security transactions? How are brokers compensated? Brokers manage orders to sell or buy securities. Brokers are agents who deal on behalf of an
Q. What is the function of Dividend policy decision? Dividend policy decision: the third major decision of the financial management of the decision related to the dividend poli
Q. What is the requirement of Working Capital? Ans. Meaning of Working Capital: - Working capital management is a significant aspect of financial management. In business money
Financial Market: Being entrusted with different functions having macro level implications on the nation's economy, the financial system tries to fulfill its role through the f
R eceipt of bids and bid opening We discussed how to prepare the bids and to publish them in the earlier sub section. Now let us see how to receive and open bids. To receiv
Explain about the Internal controls of benchmarking "Comprises control environment and control procedures. It includes all the procedures (internal contr
Breaks in Specific Cost of Capital: The specific costs of capital may also be affected by the amount of finance the firm wants to raise. As the amount of financing increases, the
You deposit $3,000 in a back account that pays 10% annually, how much would you have im your account after 5 years?
How do mergers affect small businesses? A: As per to a recent study by Federal Reserve and Wharton Financial Institutions Center economists, not a big deal. Their analysis reve
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd