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net profit margin

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › net profit margin

  • This topic has 5 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 30, 2015 at 12:46 am #286266
    hamzaukadia
    Member
    • Topics: 12
    • Replies: 13
    • ☆

    is there a reason why net profit margin would increase despite the fact that along with Revenue, expenses and cost of good sold has also increased?

    Any help would be appreciated.

    Thank you

    November 30, 2015 at 8:24 am #286317
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22698
    • ☆☆☆☆☆

    Because revenue has maybe increased at a faster rate? Put some figures down on a sheet of paper. Now, increase the revenue figure by 50%, cost of sales by 20% and expenses by 15%

    What’s happened to your net profit percentage?

    November 30, 2015 at 11:08 am #286378
    hamzaukadia
    Member
    • Topics: 12
    • Replies: 13
    • ☆

    Thanks Mike, I am calculating ratios of a company. Should I use the figures before ‘Exceptional items’ or the whole total?

    November 30, 2015 at 6:09 pm #286506
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22698
    • ☆☆☆☆☆

    No reply – it’s wrong of you to use me for advice in your professional life.

    Please don’t do this again

    November 30, 2015 at 6:58 pm #286519
    hamzaukadia
    Member
    • Topics: 12
    • Replies: 13
    • ☆

    ?????????? I have never worked as accountant. I am doing this as part of an assignment for my studies.

    but if you don’t want to answer my question, then fine.

    November 30, 2015 at 7:46 pm #286535
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22698
    • ☆☆☆☆☆

    Again, I’m not here to do your homework! The opentuition material (whether it’s F3 or F7) should be enough for you to answer your homework for yourself

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
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