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To: nihil who wrote (98501)2/8/2000 6:30:00 AM
From: Amy J  Respond to of 186894
 
OT Hi Nihil,

RE: "Margin percentages"

Just like a (good) accountant, you alluded to my incorrect (high-tech vernacular) use of the term, margin (for gross margin percentage). Alas, yes, GM% measures the business pulse or profitability, and yes, one should never write margin when meaning GM%, even though folks might colloquially say, "what are the margins on this puppy?" (not sea monkeys). So, to be precise (and accounting is a precise science), "what are the gross margin %'s on the other components?"
[ (Sales - cogs) / Sales ] * 100%, pre-tax of course. (and... yes... pre-other income, like interest... EBIT, and pre-sag and other expenses. Only use the cogs and the sales, less sales discounts of course)

Amy J