The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue.
It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form.
<h3>How do we calculate net profit margin?</h3>
Net profit margin is calculated by dividing the net profits by net sales, or by dividing the net income by revenue realized over a given time period.
<h3>What is good net profit ratio?</h3>
For example, in the retail industry, a good net profit ratio might be between 0.5% and 3.5%.
Other industries might consider 0.5 and 3.5 to be extremely low, but this is common for retailers. In general, businesses should aim for profit ratios between 10% and 20% while paying attention to their industry's average.
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Answer:
The statement is: False.
Explanation:
Managers must <em>make decisions based on facts and support data</em> -such as the accounting books of the company- since those sources provide <em>objective information</em> on what is happening in regards to the organization. Even if they might be allowed to follow their instinct in taking risky investment decisions, a <em>study </em>must be made before taking a step forward to analyze what the best output could be.
Thus, guessings and personal points of view are not enough for managers to conduct business.
Answer:
The correct answer is A
Explanation:
Designer worksheet is the one such document which states the work or the potential in the designer or the person. It is that document which contains or comprise of the portfolio of the designer, having or shown the previous work which is done by the designer or the person in his or her last company and the few or some of the sample designs which provide an idea to other person regarding the potential or taste of the designer.
Answer:
d. accounts receivable.
Explanation:
We know that
The current assets = Cash and cash equivalents + Short-term investments + Notes receivable + Inventories + Prepaid expenses and other related current assets
And, current liabilities comprise of
= Short-term note payable + Accounts payable + current portion of long-term debt
The duration of the current asset and the current liabilities within one year.
Therefore, the account receivable is not an example of current liabilities.
