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You are analyzing the financial performance of two tech companies, Company Alpha and Company Beta, in the software industry. Requirements: Company Alpha reported a net
You are analyzing the financial performance of two tech companies, Company Alpha and Company Beta, in the software industry.
Requirements:
- Company Alpha reported a net income of $30 million on total revenue of $150 million for the fiscal year 2023. Company Beta recorded a net income of $40 million on total revenue of $200 million during the same period.
- Calculate the profit margin for both companies.
- Discuss which company demonstrates better profitability relative to its revenue.
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