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A high profit margin can result from low expenses relative to sales or high sales relative to expenses. Basically, customers determine the value of goods or services, which are created by the process. If costs are low that can mean that inventory, workforce, equipment, capacity and facilities are managed efficiently. Effectively managed processes can provide a double impact on net income by increasing net sales and decreasing cost of goods sold.
Return on Assets is an indication of profit per dollar of assets. ROA is the mostly used measure of asset productivity and it's measures how well assets are used to generate income...
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