- Analyze and Interpret the company’s performance in the previous 3 years in related to the following profitability ratio (Operating Income Margin ratio)explain which is performing better? and why?.
Homework Answers
Answer
Operating income margin ratio measeures the percentage of money that is left with the company after comparing its cost of goods sold and operating expenses with its revenue.
Operating income is measured by subtracting cost of goods sold and operating expenses from revenue.
It shows the profitability of the company that is how much the firm is left with it.So, higher the operating income margin ratio the better is the performance
Analysis and interpretation
In year 2017 the NIGH has operating margin of .58 and NCC has operating amrgin of 0.043.So NIGH has more operating income than NCC it is performing better and its expenses are much less than its revenue as compared to NCC.
In year 2018 the NIGH has operating margin of .60 and NCC has operating amrgin of 0.13.NCC has increased its operating amrgin ratio to 0.13 and is performing better as compared to previous years also NIGH has increased its oeprating amrgin ratio to0.60.Although NCC has increased its margin ratio comparatively more than NIGH but NIGH has more operating income than NCC it is performing better and its expenses are much less than its revenue as compared to NCC.
In year 2019 the NIGH has operating margin of .74 and NCC has operating amrgin of 0.043 NCC has decreased its operating amrgin ratio to 0.043 and isnot performing good as compared to previous years although NIGH has increased its oeprating amrgin ratio to 0.74.NIGH has more operating income than NCC it is performing better and its expenses are much less than its revenue as compared to NCC.
NIGH is performing better than NCC as its operating margin ratio each year is increasing and also it is higher than the operating amrgin ratio of NCC.
NIGH operating margin ratio increased from .58 in 2017 to .74 in 2019 so it is performin better than ncc whose operating margin ratio has decreased from .046 to .043
Also NIGH Operating margin ratio is higher in each year than the oeprating margin ratio of NCC.
In year 2017 NIGH have ratio of .58 and NCC have ratio of .046.In 2018 the ratio of NIGH is .60 and ratio of NCC is 0.13.
Each year operating amrgin ratio of NIGH is more than ratio of NCC so performing better.
Conclusion NIGH is performing better.
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Analyze and Interpret the company’s performance in the previous
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Analyze and Interpret the company’s performance in the previous 3 years in related to the following...
Analyze and Interpret the company’s performance in the previous
3 years in related to the following profitability ratio (Operating
Income Margin ratio)explain which is performing better? and
why?.
Operating Income Margin comparison between NIGH and NCC 2017 0.58:1 2018 0.60:1 2019 0.74:1 Operating Income Margin NIGH Operating Income Margin NCC 0.046:1 0.13:1 0.043:1
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Analyze and Interpret the company’s performance in the previous
3 years in related to the following profitability ratio (Operating
Income Margin ratio)explain which is performing better? and
why?.
Operating Income Margin comparison between NIGH and NCC 2017 0.58:1 2018 0.60:1 2019 0.74:1 Operating Income Margin NIGH Operating Income Margin NCC 0.046:1 0.13:1 0.043:1
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working on Mondelez International Inc. CI A and
Hewlett package enterprise Co
here is the task:
4. Obtain industry averages for each firm and
a. Compare each firm’s ratios to the available industry ratios for
the most recent year. (Ignore the “Company” column as your
calculations will be different.)
b. Analyze the performance of each firm versus the industry and
comment on any trends in each individual firm’s performance.
Identify any strengths or weaknesses you find in each firm.
ll...
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of cash flows, specifically identifying the two largest investing
activities and the two largest financing activities. Evaluate the
cash flow from operating activities of the firm (specifically
analyze whether the company is performing better over the years,
discuss whether cash flow from operating activities appears to be
satisfactory given the current business environment and firms’
stage in the life cycle).
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