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Profit Company A Company B Company A Company B Total Revenues 2019 1000 2019 10 2018 1000 2018 20 2030 Profit Margin 100 10% 5

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Profit Company A Company B Company A Company B Total Revenues 2019 1000 2019 10 2018 1000 2018 20 2030 Profit Margin 100 10% 5 50% -150 -15% 5 25% -40 Calculate the Average Profit Margin (ratio of the sums) by dividing the Total of the Profits by the Total of the Revenues -2% Calculate the Average Profit Margin (average of the ratios) by averaging the Profit Margins above. 18%

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