Net income margin percentage has steadily decreased

Assignment Help Financial Accounting

Reference no: EM131251133

In analyzing a firm’s vertical / horizontal income statement over a four-year period, you observe that the firm’s gross margin percentage has steadily increased. Over the same period, its net income margin percentage has steadily decreased. How would you interpret this?

Reference no: EM131251133

Questions Cloud

Analyze requirements for constructing a computer laboratory : Your team is tasked with analyzing and documenting requirements for constructing a standard computer forensics laboratory for a recently launched company -- XYZ, Inc.

Describe responsibilities of your companys r & d department : How is technological innovation perceived and responded to by your senior management? Is it embraced or always rejected? Rejection may be the conservative, low-risk path.

Thought of as a foreign language : The law is sometimes thought of as a foreign language due to all of the legalese in contracts. Insurance contracts, especially, are notorious for being incredibly difficult to understand.

What is the effective annual rate on this arrangement : A firm sells its $1,120,000 receivables to a factor for $1,075,200. The average collection period is 1 month. - What is the effective annual rate on this arrangement?

Net income margin percentage has steadily decreased : In analyzing a firm’s vertical / horizontal income statement over a four-year period, you observe that the firm’s gross margin percentage has steadily increased. Over the same period, its net income margin percentage has steadily decreased. How would..

How the person you represent in the global village : Use the Internet to find out how the person you represent in the global village might be affected by the global challenges associated with global security trends. In your post, describe how global security trends are related to the person you repr..

Assuming alison uses fair-value accounting : On January 1, 2014, Alison, Inc., paid $82,400 for a 40 percent interest in Holister Corporation’s common stock. This investee had assets with a book value of $244,000 and liabilities of $113,000. Assuming Alison uses the equity method, what balance ..

Identify and explain the major purposes of value chain : Identify and explain the major purposes of value chain using examples from your selected annual report/ annual review of one of top 100 manufacturing companies listed on ASX.

User Account

All Pages