1 Use the above information to compute profit margins for ea

1. Use the above information to compute profit margins for each separate company a through e. (Round your answers to one decimal place.) 2. Which of the five companies is the most profitable according to the profit margin ratio: company A, B, C, D, or company E?

4 Exercise 3-10 Computing and interpreting profit margin LO A2 Use the folowing information so campute protft margin for each separate company a through e (Round your answers to 1 dlecimal pisce.) Whikh oi the tIive companies is the most proftable according to the prott margin ratio Prov 40, 4lll Neat)

Solution

Profit Margin =Net Income / Net Sales

Which of the five companies is the most profitable according to the profit margin ratio: company A, B, C, D, or company E?

Company C is Most Profitable

Company	Net Income	Net Sales	Profit Margin
a	5830	47020	12.4%
b	93739	418478	22.4%
c	57557	268914	21.4%
d	74875	1528150	4.9%
e	79815	456054	17.5%