37:533:317 Midterm: exam 1

• School: Rutgers University
• Department: Human Resource Management
• Course: 37:533:317
• Professor: Garrison

Document Summary

Sales: operating profit margin , ratio to evaluate a company"s operational efficiency, profit per dollar sales. Ebit= (sales revenue) (all expenses: not including taxes and interest, earnings before interest and taxes are subtracted, best view of seeing how successful a company is. Gross margin % = (sales revenue) (cost of goods sold) Revenue: gross profit , the percentage of total sales revenue the company retains after incurring direct costs of producing. Common size income statement- an income statement in which each account is expressed as a % of the value of sales: used for easy analysis between companies, time periods, etc. Year-over-year analysis- a method of evaluating 2+ measured events to compare the results from one time period to another: popular in evaluating performance. Net income= (net sales) (all expenses: bottom-line focus , a company"s total profit, all public companies are required to report earnings per share .