1 - Drexel University
Given the decline in GPM the net profit margin ratio (NPM) is relatively good. GPM fell from 32.9% to 29.7% (3.2%), whereas the NPM only fell from 7.4% to 5.1% (2.3%). This probably reflects the likelihood that some of the operating expenses (the difference between gross profit and net profit) are fixed relative to the level of sales. ................
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