Question
1. Refer to the income statements presented in Exhibits 2.9 , 2.10 , 2.11 , 2.12 , and 2.13 for Callaway Golf Company, Sdzucker AG,
1. Refer to the income statements presented in Exhibits 2.9 , 2.10 , 2.11 , 2.12 , and 2.13 for Callaway Golf Company, Sdzucker AG, Cemex S.A.B. de CV, Sol Meli SA, and Thai Airways. (Pages 44-48 in the chapter 2 reading)
Question:
a. Calculate gross profit margin (gross profit/sales), operating profit margin (operating profit/sales), and net profit margin (net earnings/sales) for each of these companies. If a particular ratio cannot be calculated, explain why not.
b. Is it valid to compare the profit margins calculated in part (a) across these companies in assessing relative profitability? Why or why not?
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