Profitability ratios
Gross profit margin =Gross profit/Net sales The formulae used in the calculations are listed in the appendix. ("Growth, Profitability, and Financial Ratios for Myer Holdings Ltd (MYR) from Morningstar.com," n.d.)
Commentary
- Profitability
Generally, profitability ratios give someone an idea on how the company is utilizing resources to make the profit.
Myer has a lower gross profit margin compared to David Jones. The gross profit, net profit margins for Myer decline over the two-year period, 2012 and 2013. During the same time, David Jones improves marginally on the margins. This is an indication of changing fortunes in the industry, where one company gains as the other declines. The two companies have a similar tax environment as tax expense ...
