what would explain a firm's having a high gross profit margin and a low net profit margin?

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what would explain a firm's having a high gross profit margin and a low net profit margin?

please relate in financial analysis

2007-12-31 07:08:28 · 3 answers · asked by jm 1 in Business & Finance ➔ Other - Business & Finance

3 answers

This would happen if you have high Selling, General & Admin expenses, so look out for items like advertising & promotion, directors' remuneration, salaries, travelling, entertainment, etc.

2007-12-31 22:27:15 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋

Unexpected expenses ?

And you DO need to do your own homework

2007-12-31 15:22:27 · answer #2 · answered by edco 5 · 0⤊ 0⤋

There could be any number of reasons. High charge offs. High amount of depreciation.

Other than that, you need to do your own homework.

2007-12-31 15:11:45 · answer #3 · answered by Tim 7 · 1⤊ 0⤋