Critical Analysis Of Ranarock Sdn Bhd

The gross profit margin measures the amount of profits that a company generates from its operations without consideration of its indirect costs. Thehigher thegross profit margin, the greater the efficiency of a company’s operations (Besley & Brigham 2007). It means that the company is generating enough income to cover its operating expenses. On the contrary, a lower gross profit margin indicates that the business is not generating adequate income to cover its operating expenses.

Net Margin is the ratio of net profits to revenues of a company. It is used as an indicator of a company’s ability to control its costs and how much profit it makes for every dollar of revenue it generates. Net Margin is calculated using the formula: Net Margin = (Net Profit / Revenues ) * 100 Net margins vary from company to company with individual industries having typically expected ranges given similar constraints within the industry. For example, a retail company might be expected to have low net margins while a technology company could generate margins of 15-20% or more. Companies that increase their net margins over time generally see their share price rise over time as well as the company is increasing the rate at which it turns dollars earned into profits.

a. Net profit is the gross profit (difference between the cost of goods and services and the total reimbursement to the pharmacy for those goods and services) minus all overhead costs.

This measures the relationship between net profits and sales of a firm. The net profit margin is indicative of management’s ability to operate the business with sufficient success not only to recover revenues of the period, the cost of merchandise or services, the expenses of operating the business and the cost of the borrowed funds, but also leave a margin of reasonable

Profit Margin: -This ratio relates the operating profit to the sales value (Walker, 2009). It tells us the amount of net profit per pound of turnover a business has earned.

o In summary this analysis shows the percent of every dollar in sales that is

Gross profit is defined as the difference between Sales and Cost of Sales. The gross margin (or gross profit ratio) expresses the gross profit as a proportion of net sales. The gross profit margin ratio measures how efficiently a company uses its resources, materials, and labour in the production process by showing the percentage of net sales remaining after subtracting the cost of making and selling a product or service. It indicates the profitability of a business before overhead costs. The higher the percentage, the more the business retains of each dollar of sales. So: the higher the gross profit margin ratio, the better.

| The company generates 8.83 cents in net income for every $1 sales, quite good for a low profit margin business.

● functional efficiency and internal interface ● marketing information and planning and control ● marketing productivity

Used to determine the competitive strength and cost effectiveness of a company, the operating profit margin shows what percentage of a company’s revenue is left over after covering variable costs. It is the operating profit divided by the net sales. Essentially, the operating profit margin depicts how much a company makes on each dollar of sales.

There are two types of customers, Internal as well as external customers. Internal customers are employer, employees, etc. and external customers are who buy products. For effectiveness and efficiency depends on the satisfaction of customers. If internal customers are not satisfied than how can they satisfy external customers? Manager should take care, treat well and help for rights of employees to fulfil the satisfaction of employees. So if internal staff is satisfied than they can be able to work properly and can help to fulfil the requirement of

The profit margin ratio measures how much out of every dollar of sales a company keeps in earnings. It indicates if the company is efficient in its manufacturing and distribution processes. The Johnson & Johnson company has the best ratio of 0.23.

What are factors influence to customer purchase behavioral? How is good management system impact to employee performance delivery high quality service?

Net Profit Margin can be call profit margin or return on revenue or rate of profitability. Net profit margin is the rate of profitability which can inform us that the amount of after-tax profit which make for everyone dollar and it generate revenue. (Kennon, 2013) Net profit margin is very beneficial when companies which in the same industry.(Peavler, 2013)

Now let’s see how much profit a company makes for every $ 1 it generates in revenue. Profit margins vary by industry, but all else being equal, the higher a company’s profit margin compared to its competitors, the better.