In addition, the price to book ratios are also higher than last quarter. The key question for me and this fund is figuring out if there is value in any of the stocks. To do this, I must fill out a table of various preferred ratios and then explain them in a write-up. This way the reader will understand my reasoning as I write about it further
Gross Profit Margin
The gross profit margin refers to the dollar value of sales less cost of sales. A common mistake is to compare it to contribution margin. It is strictly a financial value directly tied to two unique financial items: net sales and cost of sales. Contribution margin is a function of the sale of single unit.
The gross profit margin is always stated in dollars. The alternative is the gross profit percentage which denotes the percentage of gross profit against net sales. A sophisticated user of this term understands that it is a function of net sales and stated in dollars.
The transportation sector of the United States economy is comprised of nine industrial groups. One particular group moves more volume of tonnage based on ton miles than any other form of transportation – Railroads. In accordance with the Federal Department of Transportation, railroads move 39.5% of all freight in the US (based on ton miles which is the length freight travels). It’s a $60 Billion industry with over 140,000 miles of track. It is dominated by seven major carriers (referred to as Class I Railways).
The difference between the sales price and the cost of the product or service rendered is known as gross profit margin in business. It is traditionally the amount identified on the income statement or a tax return as the amount earned after cost of sales a.k.a cost of goods sold, cost of services rendered, etc. is subtracted from sales (revenue).