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You don’t want to compare companies by profit margin. (Profit/Revenue) You want to compare them by return on capital. (Profit/Capital) Some businesses have a
by mdnahas 3y ago
You don’t want to compare companies by profit margin. (Profit/Revenue) You want to compare them by return on capital. (Profit/Capital) Some businesses have a high turnover of inventory, so revenue is large even if there was very little money invested.