Gross profit margin

implications. It adversely affects the ability to meet customer demand as it may mot cope up with its customer requirements. Gross Profit Ratio The ratio expresses the relationship of gross profit on sales to net sales in terms of percentage (Van Horne, Wachowicz & Bhaduri, 2005). Goss profit is the result of the relationship between prices, sales volume and costs. Gross profit margin of Starbucks Corporation is 23% whereas the ratio for McDonald’s is 35%. McDonald’s ratio is high as compared to Starbucks

significant increase in the company’s cost of goods sold between years 2 and 3 with only a modest increase in their sales for the same period. The balance of their expenses remains stable or decreased modestly during the same time period but gross profits declined due to the significant increase in cost of goods sold. The vertical analysis also shows a significant increase in the company’s cost of goods sold in the same time period but also reflects a significant increase in the company’s inventory

to question no-a a(1). It seems that Track Software LTD. is focusing on mainly in profit maximization rahter than the overall shareholder value maximiaztion. In every year except first two years firm’s pofit has been increased but per share value of the firm dit not increase that much. This is not a right goal for the company. A firms main purpose is to maximize the shareholder wealth not to increase profit. a(2). There is some potential problem exist in the firm. The firm is now mostly managed

The organizational structure of a business is the framework that is conducted to keep the business running efficiently. This structure is made up of different departments, products, divisions or geographies that work together to create revenue from its resources. The framework depicts how these levels of organization should work. Organizational structure provides a business with instructions on how it must proceed to become successful and in case a problem arises. Many times these structures have

e-commerce websites in 11 countries. ● The size gives it power over its suppliers as well as a strong market position. Due to its vast operations , Wal-Mart enjoys economies of scale and thus has kept a steady gross margin for the past 5 years between 24% and 25%. Similarly, Operating margin has been maintained at 5.9% on average which shows its control over costs. ● Wal-Mart, has a high Inventory turnover. For the fiscal year

rapidly converted to cash. When something is “liquid,” the asset can be easily used for buying or selling, thus the utmost liquid asset is cash. Solvency refers to the organizations assets versus liabilities. Organizations that have solvency accrue profits that exceed their liabilities, thus a higher probability of covering the liabilities. However, a company that is high in

Rationalize Channel Margins to Optimize Distribution Costs By Makarand Joshi Asst. Professor - Orange City Institute of Higher Education, Nagpur Email: makarand1234@gmail.com; Mobile 9422805719 ABSTRACT: Distribution Channel Margins form an important component of the distribution cost which directly affects the bottom line of any company. While the companies are trying to reduce the distribution costs, to improve their own margin pressures, there seem to be little innovations in

Debt Ratio: (290,000+200,000)/ 1,200,000=40.58% h. Times Interest Earned: 126,000/ 39,600=3.1% i. Gross Profit Margin: 300,000/ 1,200,000=25.5% j. Net Profit Margin: 60,480/ 1,200,000=5.1% k. Return On Total Assets=126,000/ 1,200,000 =10.50% l. Return On Net Worth=60,480/ 910,000 =6.65% m. Z-score= 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1X5 X1= (280,000-290,000)/ 1,200,000=

APPLE COMPUTER CASE ANALYSIS After the return of Steve Jobs at Apple Computer many changes happened which finally brought the company back to profitability. However Apple holds a market share of only 3.48 percent among its six strongest competitors. The fact is that today the PC market is a mature market and only the strong survive. In Exhibit 1 is shown how the PC market has been shared among the most valuable players and how Apple 's share has decreased by more than half during five

Financial performance: Group revenue and Gross margin: In J.B Hunt, the transaction value has been increased by 1.5% to 2456.7 million for 2014 whilst group revenue increased by 1.2% by 2234.2 million. Likewise, Group increased by 1.1% to 2789.1 million in 2015 and Group revenue increased by 0.3% to 2256 million. These are the sales and revenue history of J.B Hunt. Instead of a highly promoted marketplace, they focused on full price sales and minimized the number of promotions. Cash flow: J.B Hunt