Question

Analysis and interpretation of gross profit margin

Answer 1

Hello,!!Here is ur answer⤵️⤵️⤵️⤵️

♥️The gross profit margin ratio analysis is an indicator of a company's financial health. ... Compared with industry average, a lower margin could indicate a company is under-pricing. A higher gross profit margin indicates that a company can make a reasonable profit on sales, as long as it keeps overhead costs in control.♥️

Answer 2

Answer:

Companies always focuses on growth and profit together.These both are linked somehow.Because if your company or product is growing then its obvious you will earn profit.

But if your engagement rate is low and your growth if falling steeply or is not growing,is stable at a particular pace then Company should focus at Profit Margin.

For that to happen,focus on your product and work environment.

Don't focus on quantity of customers but more on quality.So what will happen is when you have 500 customers and all of them is buying your product, then you have have the highest profit margin.