Operating Margin 20 15 10 5 0 -5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -10 -15 -20 NUE X-AKS STLD Net Margin 11 6 2011 200 2013 2015 2018 2017 2018 19 -14 -19 ONDE --AKS STLD 3. Look at the Gross Profit Margin for AKS, a steel company vs its competitors. Then look at its operating profit margin. What comes in between the Gross and Operating margins on the income statement? What does that tell you about AKS's expenses relative to its competitors. Can you think of any reason this might be the case? 4. Now look at the Net Profit Margin for AKS relative to its competitors compared to its Operating margin. What does this tell you about some of AKS's expenses? 5. Look at the Operating Margin given for Nucor (NUE) and Steel Dynamics (STLD). Just based on the differences in the operating margin, which company looks more profitable? If you look at the comparison of the EBITDA margins, does this change? Looking at the difference between STLD's Operating margin and EBITDA margins, what does that tell you about STLD? STLD is a young, new steel company producing specialty steel products using new processes and Nucor is a much older company. Why might that affect the difference in these two ratios? Operating Margin 20 15 10 5 0 -5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -10 -15 -20 NUE X-AKS STLD Net Margin 11 6 2011 200 2013 2015 2018 2017 2018 19 -14 -19 ONDE --AKS STLD 3. Look at the Gross Profit Margin for AKS, a steel company vs its competitors. Then look at its operating profit margin. What comes in between the Gross and Operating margins on the income statement? What does that tell you about AKS's expenses relative to its competitors. Can you think of any reason this might be the case? 4. Now look at the Net Profit Margin for AKS relative to its competitors compared to its Operating margin. What does this tell you about some of AKS's expenses? 5. Look at the Operating Margin given for Nucor (NUE) and Steel Dynamics (STLD). Just based on the differences in the operating margin, which company looks more profitable? If you look at the comparison of the EBITDA margins, does this change? Looking at the difference between STLD's Operating margin and EBITDA margins, what does that tell you about STLD? STLD is a young, new steel company producing specialty steel products using new processes and Nucor is a much older company. Why might that affect the difference in these two ratios