Explain, from a marketing perspective, why you would expect gross margin percentage, expenses-to-sales ratio, net profit margin,

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Explain, from a marketing perspective, why you would expect gross margin percentage, expenses-to-sales ratio, net profit margin, inventory turnover, and to be different for a grocery store chain versus a department store chain.

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

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Gross margin percentage It is important because it shows how much profit is made by the retailer on merchandising sales without taking into consideration the expenses associated with operation of store It is also important for department store chain because their operating expenses are greater than a grocery store chain Net Profit margin is used because operating managers have not much control over the interest and tax expenses that do not reflect the operating managers performance Inventory turnover similar to gross margin is used in evaluating how the retailers effectively utilize the investment made in inventory and shows the cost of goods sold from income statement Higher inventory turnover is expected because of the retail ...View the full answer

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Mugdha Sisodiya

My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional. Since 2012 I am providing home tutions.

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