Concept introduction:
Profit Margin:
The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales.
Requirement 1:
To compute profit margin percentage for Apple and Google company respectively.
Concept introduction:
Investment Turnover:
The investment turnover for a company is calculated as the ratio of net sales to average investments during the period. The average investments calculated as the sum average of opening and closing balance of invested assets in the company respectively.
Requirement 2:
To compute investment turnover ratio for Apple and Google company respectively.
Concept introduction:
Ratio Analysis:
The comparison of ratios such as profit margin and investment turnover to evaluate the performance during the period for the given companies is known as ratio analysis.
Requirement 3:
To explain:
To enumerate the reasons for better performance based on the information provided for fiscal year 2017 for Apple and Google company.
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