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Just give a general response or observation to this in a few paragraphs. For this exercise, I calculated financial ratios for my company, Snap-on Incorporated.

Just give a general response or observation to this in a few paragraphs.

For this exercise, I calculated financial ratios for my company, Snap-on Incorporated. I calculated the last five years of four different financial ratios so that I could view a trend.

2018 2017 2016 2015 2014
Gross Margin 49.9907 49.524 49.8601 49.1619 48.3357
Operating Margin 25.5594 23.9253 25.102 22.8108 20.8897
Net Profit Margin 18.1757 15.1265 15.9282 14.2776 12.8718
ROI - Return on Investment 17.1284 15.3574 16.7345 14.901 13.9929

The trend of gross margin remains relatively stable over the five-year span, and remains pretty high at just under 50%. The operating margin is a measure of profitability and has increased about 22% over the last five years. The net profit margin reflects how much net income a business makes from each dollar of sales, and has increased substantially by 40% over the last five years. The ROI calculates the profits of an investment of the original cost, and has increased by just under 25%. Overall, these financial ratios tell me that Snap-on is a profitable company. The profit margin is pretty good, and the company has made positive investments which have increased profits and operating income.

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