what is operating profit ratio
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what is operating profit ratio

On Wednesday, on the first four shopping days of Christmas, upscale stores were discounting heavily, including most of the fashion retailers. H&M offers discounts of up to 60%, while Debenhams, Fraser, French connections, gaps, new faces and Dorothy Perkins offer discounts of up to 50%. 1. The accounting income is based on the actual economic business of the enterprise, and the sales revenue obtained from selling products or providing services is deducted from the cost of actual sales revenue. These economic businesses include both external and internal transactions. Business activities with the outside world transfer the assets or liabilities of an enterprise, since it is usually a direct monetary income, so its measurement is generally accurate. The use or transfer of assets within an enterprise, as a result of a non-direct monetary balance, is usually not accurate. According to traditional accounting views, changes in market prices or expected prices are not included in the transfer of internal assets. When a transaction occurs, the price of an old asset is usually transferred to the new asset, which is the measurement of the proceeds of the transaction. The transaction method automatically deduces the process of determining income during sales or trading, as well as the cost transfer practice in accounting. In theoretical economics, investment means buying (and therefore producing) capital goods - not being consumed but being used in future production. Examples include building railroads, or factories, cleaning the land, or allowing yourself to go to college. Strictly speaking, investment in formula GDP= C + I + G + NX is also part of gross domestic product. In that respect, the function of investment is divided into non-residential investments (such as factories, machinery, etc.) and residential investment (new homes). The correlation between I = (Y, I) is known to have a close relationship with income and interest rates. Higher incomes would boost higher investment, but higher interest rates would discourage investment because it would be more expensive to borrow. Even if companies choose to use their own funds to invest, interest rates represent the opportunity cost of investing in those funds rather than the interest that will lend out.