Final answer:
Marin Exports reports net profit margin, gross profit, operating cash flow, and return on assets, which are critical financial indicators. These metrics help assess a company's profitability, cash generation from operations, and efficiency of asset use. An example provided demonstrates how to calculate accounting profit.
Step-by-step explanation:
The subject of this question is Business. The student is asking about various financial measures that pertain to a company's profitability and financial performance. The specific measures mentioned in the question are net profit margin, gross profit, operating cash flow, and return on assets.
Net Profit Margin:
Net profit margin is a profitability ratio that measures the percentage of each dollar of revenue that translates into net profit. It is calculated by dividing net profit by total revenue and multiplying by 100. For example, if Marin Exports has a net profit of $50,000 and total revenue of $200,000, the net profit margin would be 25%.
Gross Profit:
Gross profit is the amount of revenue that remains after deducting the cost of goods sold (COGS). It represents the profit generated from the production and sale of goods before deducting operating expenses. To calculate gross profit, subtract the cost of goods sold from total revenue.
Operating Cash Flow:
Operating cash flow is a measure of a company's ability to generate cash from its core operations. It indicates the amount of cash generated or consumed by a company's day-to-day operating activities. To calculate operating cash flow, start with net income and adjust for non-cash expenses and changes in working capital.
Return on Assets:
Return on assets (ROA) is a profitability ratio that measures the efficiency of a company's use of its assets to generate profit. It shows how well a company is utilizing its resources. To calculate ROA, divide net income by average total assets and multiply by 100.