MKTG 355 Lecture Notes - Lecture 6: Gross Margin, Inventory Turnover, Earnings Before Interest And Taxes
Document Summary
Mktg355 chapter six performance, as measured by return on assets. Strategic profit model- is a method for summarizing the factors that affect a firm"s financial. Net sales = gross sales + promotional allowances returns, discounts, and credits. Cost of goods sold (cogs) amount a retailer pays to vendors for the merchandise. Gross margin (gm) = net sales cogs. Selling, general, and administrative (sg&a) expenses operating expenses. Operating profit margin = gross margin operating expenses extraordinary. Net profit margin = operating profit margin extraordinary (nonrecurring) expenses taxes interest depreciation. Gross margin percentage is gross margin divided by net sales. The performance of various types of merchandise. Their own performance with that of other retailers with higher or lower levels of sales. Inventory turnover- a measure of the productivity of inventory. It is used to evaluate how effectively retailers utilize their investment in inventory.