Net margin ratio
Chapter 15
Over each of the next two years, the company expects to have a net profit margin of 8 percent, a payout ratio of 60 percent, and a constant 3 million shares of common stock outstanding. If the stock is expected to trade at a P/E ratio of 14 at the end of the second year and if the investor requires a 14 percent rate of return, what should the ...
[DOC File]Chapter 19—Performance Measurement, Balanced Scorecards ...
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a. an increase in the profit margin ratio to above 30%. b. a decrease in the profit margin ratio to below 30%. c. no change in the profit margin ratio. d. a change in the profit margin ratio that cannot be determined from this information. ANS: C DIF: Moderate OBJ: 19-4. 19. Profit margin indicates the portion of sales that. a. covers fixed ...
[DOC File]gar003, Chapter 3 Systems Design: Job-Order Costing
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68. A company sells two products--J and K. The sales mix is expected to be $3.00 of sales of Product K for every $1.00 of sales of Product J. Product J has a contribution margin ratio of 40% whereas Product K has a contribution margin ratio of 50%. Annual fixed expenses are expected to be $120,000.
[DOC File]Ratio and Accounts Analysis
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Current ratio 2.0 Quick ratio 1.5 Current liabilities P600,000 Inventory turnover (based on cost of sales) 8 times Gross profit margin 40% World’s net sales for the year were . a. P2.4 million b. P4.0 million c. P1.2 million d. P6.0 million. 54.
[DOCX File]Business Studies at Coláiste na Mí
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Ratio measures the net profit for the year as a percentage of the sales for the year. The net profit margin is also known as net margin or net margin percentage. Example: Work out the Net Profit Margin/Percentage of the following company: Sales 200,000. Gross Profit 80,000. Expenses 60,000.
[DOC File]Ratio of the Month: Working Capital
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If the net profit margin is low, the asset turnover ratio must be strong enough to offset the low operating efficiency and vice versa. A few things to remember: The usefulness of this ratio is heavily influenced by the value placed on the assets
[DOC File]FINANCIAL RATIOS REPORT
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A favorable ratio is < 1.0. Formula: Long Term Debt Equity. 6. Operating Margin (Loss) as a % of Total Operating Patient Revenue: This operating ratio is commonly interpreted as an indicator of operating efficiency, performance, and productivity. A favorable ratio is > 1%. Formula: Operating Margin (or Net Loss) Total Operating Patient Revenue . 7.
[DOCX File]Profitability
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The net margin measures efficiency and our ability to control expenses. Ratio 3. This ratio is the true profitability indicator because we measure net profit against all the capital invested in the firm. We compare this with the opportunity cost of the funds i.e. putting the funds on deposit in a bank.
[DOC File]Paper Grading Guide
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Current Ratio. Quick Ratio. Debt Equity Ratio. Inventory Turnover Ratio. Receivables Turnover Ratio. Total Assets Turnover Ratio. Profit Margin (Net Margin) Ratio. Return on Assets Ratio Analyzed in 1,050 words why each ratio is important for financial decision making. Total Available Total Earned. 5 #/5 Writing Guidelines
[DOC File]Chapter 9 The Role of Accounting in Business
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137. Its _____ ratio may tell us that a company generated an excellent return on assets in its first year and a good return in its second year. a. management effectiveness ratio. b. management efficiency ratio. c. profit margin ratio. d. financial condition ratio (a; Hard) 138.
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