Question

What profit ratio should be given to a company on his expenditure?

Answer 1

Explanation:

Answer

Investors compare the operating profit margin of a company with the operating profit margin of industry competitors or a benchmark index such as the Standard & Poor's 500 index. For example, the average operating profit margin for the S&P 500 was 10.7% for the four.th quarter of 2018. A company that has an operating profit margin higher than 10.7% would..

have outperformed the overall market. However, it is essential to consider that average profit margins vary significantly between industries...........

Answer 2

Answer -

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• Net profit margin is your metric of choice for the profitability of the firm, because it looks at total sales, subtracts business expenses, and divides that figure by total revenue. If your new business brought in $300,000 last year and had expenses of $250,000, your net profit margin is 16%.

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