| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 1084.1 | SECRET | SDSVAX::SWEENEY | Patrick Sweeney in New York | Thu Apr 19 1990 09:10 | 12 |
| profit margin = (price - cost) / price
Of course, on a corporate basis, such figures which aggregate
total sales and total cost of sales are published to the public.
Of course, on a product by product basis, or class by class basis,
Digital's traditional practice has been to consider cost data, units
sold, and so forth, as very, very, strongly kept secrets.
Even the fact that cost data and units sold are secret data is a
secret, although I am permitted to divulge this to other Digital
employees.
|
| 1084.2 | But, then again | CSG001::MAKSIN | Joe Maksin 291-0378 PDM1-2/H4 | Fri Apr 20 1990 07:36 | 19 |
| Of course,
NOR = MLP-(Discounts+Allowance)+(Uplift+Service Income)
and Gross Profit Margin is given at % NOR.
But, then with all "product costs" at % MLP (i.e., above the line), and
all "operating expenses" at % NOR (i.e., below the line), the equation
given in note .-1, might seem a bit simplistic. [Caveat: Service
Income and Service Expense might not in MLP terms.].
MLP = Maynard List Price (artifact of accounting system)
NOR = Net Operating Revenue
Then again, as we move to Variable Margins and Value-Based Pricing,
..., but that's another story.
jOe
|
| 1084.3 | Digital's was 1.2% | SDSVAX::SWEENEY | Patrick Sweeney in New York | Fri Apr 20 1990 09:12 | 16 |
| re: .2, re: .1, profit margin = (price - cost) / price
or from the income statement
profit margin = net income / sales
for the quarter ending March 31, Digital's was 1.2% compared to a year
ago, 13%.
price and cost are not "simplistic" they are accurate. It is the text
book definition of profit margin, which is incidentally also called
return on sales.
The equation in .2 includes "net", "gross", "revenue", and "income".
It's not clear to me, indeed, I wonder if it's clear to anyone what's
being measured in .2.
|