Accounting analysis report

Because the companies can increase their sales every year, they finally are being able to manage their COGS more effectively, and rarely return on sales appeared. Therefore they could increase their gross profit margin in 2008-2009. Both of the company has good gross profit margin, but Super Cheap Auto Group has a better gross profit margin than ARB Corporation.

Net profit margin means the relationship between the final profit and sales’ Cackling et al 2010, p 664). According to table 1, both of company has good net profit margin from 2008-2009 although there’s no significant increase. This is caused by the gross profit of both companies are bigger than the expenses during 2008-2009.