Difference in observed net operating profit margins

Assignment Help Financial Management

Reference no: EM131304941

The net operating profit margin is 19% for WidgetCo and 21% for Tool. Which of the following statements is the most plausible explanation of the difference in observed net operating profit margins?

WidgetCo's has lower financial leverage.

WidgetCo uses LIFO and Tools uses FIFO.

WidgetCo's has a lower tax rate.

WidgetCo's net operating asset turnover.

Reference no: EM131304941

Questions Cloud

What are the pros and cons of out-of-band network : A network management system can communicate with a managed device using a request-response protocol or a trap mechanism. What are the pros and cons of these two methods?

Structure of risk-free interest rates is flat : Suppose that the term structure of risk-free interest rates is flat in the United States and Australia. The USD interest rate is 7% per annum and the AUD rate is 9% per annum. Payments are exchanged every year, with one exchange having just taken pla..

Difference between single-mode and multimode fiber : Modern campus networks are almost always built with Ethernet technology these days. Why is that? Why did Ethernet outlast older technologies such as Token Ring, FDDI, and ATM LAN Emulation (LANE)?

Describe the context of this leadership experience : Describe the context of this leadership experience. Describe your role and actions taken. Using the Kouzes and Posner model, focus on leadership credibility and shared values.

Difference in observed net operating profit margins : The net operating profit margin is 19% for WidgetCo and 21% for Tool. Which of the following statements is the most plausible explanation of the difference in observed net operating profit margins?

What wireless access points would you recommend for wvcc : Do some Internet research to find an access point that will meet WVCC's needs and write two or three paragraphs about the product and why you chose it.

Considering project that will produce cash inflows : Miller Brothers is considering a project that will produce cash inflows of $32,500, $38,470, $40,805, and $41,268 a year for the next four years, respectively. What is the internal rate of return if the initial cost of the project is $184,600?

Identify the type of leadership that exists in organization : From your own perspective, identify and describe the type of leadership that exists in this organization. Using what you are learning in this first unit, do you think the leader or leaders demonstrate effective leadership? Why or why not?

Discuss in general the civil and criminal consequences : Discuss in general the civil and criminal consequences from the law. Then identify from the news, three (3) specific case examples of health care organizations or health care providers found guilty of a legal or ethical breach relative to the law ..

User Account

All Pages