Peregrine Actual Exam Questions and Answers

Peregrine Actual Exam Questions and Answers Net Interest Expense - Answer-income statement Net Income - Answer-the difference between total revenue and total expenses when total revenue is greater Operating Margin - Answer-profit a company makes on a dollar of sales after paying for variable costs but before paying any interest or taxes Operating Margin Ratio - Answer-operating income/sales Operating margin is a - Answer-profitability ratio that shows how much profit a company makes from its core operations in relation to the total revenues it brings in EBIT - Answer-is the same metric as operating income and can be used in calculating operating margin Operating margin helps - Answer-investors understand how a business makes money; if its generating income primarily from core operations, or investments. An increasing operating margin - Answer-over a period of time indicates a company whose profitability is improving.