Net Sales Consideration
At approximately 24:00 and afterward, Profit Margin was calculated as (1,265 / 12,065) on slide 249. (Which could also be written out as Net Sales / Net Income). Since we are only looking at core operations and removing Other Income in the denominator, wouldn't it be more correct to remove the effec... At approximately 24:00 and afterward, Profit Margin was calculated as (1,265 / 12,065) on slide 249. (Which could also be written out as Net Sales / Net Income). Since we are only looking at core operations and removing Other Income in the denominator, wouldn't it be more correct to remove the effects of Other Income in the numerator as well? (via an after-tax deduction). Because the conventional interpretation of Profit Margin being, "For every $1 of Net Sales generated, 0.105 flows to Net Income" would not hold as Net Income is inflated from $345 of Other Income. Read More