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ABC has revenues of $22 million and expenses of $15 million. XYZ has revenues of $150 million and expenses of $110 million. Can you determine which company is more efficient from these income statements

Sagot :

Parrain

Based on the data given on the revenues and expenses of both companies, the company that is more efficient is ABC.

Which company is more efficient?

The company that is more efficient is the one with a higher Net profit margin.

ABC Net profit margin:

= (Revenues - Expenses) / Revenues x 100%

= (22 - 15) / 22

= 32%

XYZ Net profit margin:

= (150 - 110) / 150

= 27%

Company ABC is therefore more efficient.

Find out more on the net profit margin at https://brainly.com/question/14366117.

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