Week Four – Assignments
University of Phoenix
Profitability ratios are ratios which are utilized to determine a company’s profitability in a certain year. Both the net profit margin and the gross profit margin establish a company’s operational profit. Return on common equity establishes shareholders’ returns. When comparing Reed's Clothiers’ results to that of the overall industry, it is apparent that the company’s gross profit margin is a little below the industry’s average. Nonetheless, the company’s return on common equity and net profit margin is significantly lower when compared to the industry as a whole...