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armine86
Mar 20, 2008, 10:59 AM
when getting the ratio analysis of a companies 4 year income by using the gross profit margin and earnings per share and other probability analysis. What do those numbers represent? For example I have numbers like .654 .541 .410 .504 and i don't know what they mean?
morgaine300
Mar 22, 2008, 09:59 PM
What they represent depends on which ratio they are. Of the two you mentioned, gross profit margin is a percent. (i.e. .30 means 30% of sales) Earnings per share is money, so .30 means 30 cents. Some of them mean that much per $1 of the thing being compared to.

They all have different meanings.