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  • Profits and Profit Margin

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    Cyrylle Joie Vales
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    The company showed a modest increase in net profit margin over the prior year, indicating greater efficiency in converting sales to profits, though gross profit margin rose only slightly. While better management led to profits, the company needs more improvement in resource efficiency to generate higher profits. Cash flow from operations significantly increased compared to the prior period, and return on equity was up though labor costs as a percentage of income were not mentioned.

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    The company showed a modest increase in net profit margin over the prior year, indicating greater efficiency in converting sales to profits, though gross profit margin rose only slightly. While better management led to profits, the company needs more improvement in resource efficiency to generate higher profits. Cash flow from operations significantly increased compared to the prior period, and return on equity was up though labor costs as a percentage of income were not mentioned.

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    Attribution Non-Commercial (BY-NC)
    Baixe no formato DOCX, PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    22 visualizações1 página

    Profits and Profit Margin

    Enviado por

    Cyrylle Joie Vales
    The company showed a modest increase in net profit margin over the prior year, indicating greater efficiency in converting sales to profits, though gross profit margin rose only slightly. While better management led to profits, the company needs more improvement in resource efficiency to generate higher profits. Cash flow from operations significantly increased compared to the prior period, and return on equity was up though labor costs as a percentage of income were not mentioned.

    Direitos autorais:

    Attribution Non-Commercial (BY-NC)
    Baixe no formato DOCX, PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    de 1

    PROFITS AND PROFIT MARGIN Are profitability trends favorable in the company?

    The net profit margin for this year has increased by more than 1% which indicates that the company became more efficient in converting income from sales and services into actual profit. On the other hand, the companys gross profit margin increased only by 0.15% which isnt that significant. Though the company still did show better management strategies, they still need to improve their efficiency of using their resources in order to generate more profit. One reason why the companys

    Financial Indicator Operating Cash Flow Margin

    Current Period 19.28 %

    Prior Period 4.33 %

    Operating Cash Flow Margin = Cash Flow from Operating Activities / Gross Income Explanation: This percentage indicates how much cash flow a company realizes from each peso of sales or services rendered. Return on Equity (ROE) 14.05 % 12.93 %

    Return on Equity (ROE) = Net Profit before taxes / Total Equity Explanation: This measure shows how much profit is being returned on the shareholders equity. Labor Cost Ratio Labor Cost Ratio = Salary & Wages / Total Income Explanation: This measure shows what percentage of income is being spent on employees.

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