... production costs or to manage the margins its makes on products its buys and sells. Whilst sales value and volumes may move up and down significantly, the gross profit margin is usually quite stable. However, a small increase (or decrease) in profit margin, however caused can produce a substantial change in overall profits. Assuming a constant gross profit margin, the operating profit margin tells us something about a company's ability to control its other operating costs or overheads. Gross profit margin has decrease in 20x4 comparing with 20x3. The reason being this that cost of production has not been controlled and competitive pressure was higher than last year. Operating margin is low in 20x4 from 20x3; there is possibility that operational cost has been increased ROCE is sometimes referred to as the primary ratio. It tells us what returns management has made on the resources made available to them before making any distribution of ...

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