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Margin-equity ratio is a term used by speculators, representing the amount of their trading capital that is being held as margin at any particular time. The low margin requirements of futures results in substantial leverage of the investment. However, the exchanges require a minimum amount that varies depending on the contract and the trader.
Low profit margins can act as a warning to a company's owners and directors that the company might be in distress or the goods are being sold too cheap: "whatever the reason, low margins could signal trouble in the long run". [5] Profit margins can also be used to assess a company's pricing strategy. By analysing the profitability of different ...
There's more to profit margins than meets the eye. Sure, all things being equal, the higher the margin, the better. But all things are not equal. Plenty of companies can be quite attractive ...
Companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. Companies in the retail industry tend to have a very high turnover ratio, due mainly to cutthroat and competitive pricing.
It's no secret that Wal-Mart Stores is the largest retailer in the world. Currently, the company has a market capitalization of $258.9 billion and in 2013 it brought in revenue of $469.2 billion.
In the banking industry, a profit is made by borrowing money, paying for it at one rate of interest, lending that money elsewhere at a different rate of interest, and keeping the difference. But ...
Operating leverage can also be measured in terms of change in operating income for a given change in sales (revenue).. The Degree of Operating Leverage (DOL) can be computed in a number of equivalent ways; one way it is defined as the ratio of the percentage change in Operating Income for a given percentage change in Sales (Brigham 1995, p. 426):
Asked if he anticipates future margin increases for the sector, Miller said, “I don't. The number one reason, he said, is that in sports betting companies in essence play a hedge and take 10% of ...