Topic > Activity Ratio: An Analysis of Inventory Ratios and…
For most businesses, gross profit margin will suffer as competition increases. If a company has a higher gross profit margin than is typical for its industry, it likely holds a competitive advantage in quality, perception, or branding, allowing the company to charge more for its products. We can see that Microsoft has relatively very high gross profit margins compared to its major competitors. Microsoft holds a competitive advantage in product costs through efficient manufacturing techniques, economies of scale, and first movers
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