Operating Profit Margin:
The operating profit margin decreased as well. The industry’s operating profit margin was 19% and the company’s margins were less in both years. This is due to the fact that the operating expenses increased by more than 400 percent in 2010 than the previous year. Therefore the operating profit did not increase significantly to increase the operating profit margin of 2010.
Net Profit on Sales:
The net profit on sales also decreased in 2010. This is because a loan was borrowed in 2010 and 27m dollars interest had to be paid in 2010. The taxation also increased by 30m dollars in 2010 thereby negatively affecting the net profit.