A manufacturing company's financials reveal the following ratios:
Ratio/Calculation	2016	2015	2014	2013	2012	Industry Ave.
Gross Profit Margin	42.0%	41.0%	42.0%	43.0%	42.0%	40.0%
Operating Profit Margin	17.0%	18.0%	18.0%	21.0%	21.0%	20.0%
Net Profit Margin	5.0%	5.0%	6.0%	8.0%	8.0%	8.0%

Considering the profitability margins presented above (GPM, OPM and NPM), what advice would you give to this company on the different areas of the income statement they should focus their attention on in an effort to improve the company's overall profitability?

Answer rating: 100% (QA)

SOLUTION Based on the profitability margins presented there are several areas of the income statement that the company should focus on to improve its overall profitability Here are some suggestions an... View the full answer