MARGIN

Margin

Margin

Profitability ratios show the company's overall efficiency and performance. We can divide the profitability ratios of two types: the margins and returns. Reasons margins shown represent the company's ability to translate the sales of dollars in profits in the various stages of the measurement (Edward, 2003). Reasons returns shown represent the company's ability to measure the overall efficiency of the company in generating returns for their shareholders (Steven, 2004).

The gross profit margin is at a cost of sales as a percentage of sales. The higher the gross profit margin, the better for the company. The calculation is: Gross Profit / Net ...