Investors, Employees, Managers, and Creditors Are All Interested in a Company's

question 146

Essay

Investors, employees, managers, and creditors are all interested in a company's ability to remain profitable over the long-run.Answer the following questions relating to profitability ratios.
a.What does the gross margin percentage measure and how is it calculated?
b.What does the return on assets measure and how is it calculated?
c.What does the return on common stockholders' equity measure and how is it calculated?

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Definitions:

Thermoregulation

The process by which living organisms regulate their body temperature, maintaining it within a range that allows for optimal functioning.

Sebaceous Gland

A type of exocrine gland in the skin that secretes sebum, an oily substance, into hair follicles to lubricate the skin and hair.