For this discussion, you need to look up a company of your choice on SEC.gov and compute the 2 profitability ratios we learned in Ch 5.
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Get it written →For this discussion, you need to look up a company of your choice on SEC.gov and compute the 2 profitability ratios we learned in Ch 5. Make sure to look up a company that’s a merchandiser or manufacturer, who has Cost of Goods Sold (or Cost of Sales). Note, the Income Statement can also be titled Statement of Operations.
1. Compute the 2 ratios (show calculation to get full points):
- Gross Profit Rate
- Profit Margin
2. Comment on what your company ratios tell you about the company’s earnings and profitability with at least 1-2 sentences on each ratio.
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