Question
You are examining the common-size income statements for a company for the past 5 years and have noticed that the cost of goods as a
You are examining the common-size income statements for a company for the past 5 years and have noticed that the cost of goods as a percentage of sales has been increasing steadily. At the same time, EBIT as percentage of sales has been decreasing.
1. What might account for the trends in these ratios? Why?
2. What actions might managers take to improve these ratios?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
