Which of the following can be inferred from calculating a company's operating margin?
A) An organization's competitive advantage
B) How efficiently an organization is using its resources
C) Whether the organization has the resources available to meet the claims of short-term creditors
D) How efficiently managers are turning inventory over
E) How efficiently managers are collecting revenue from customers

Question

Quizplus · Accepted Answer

Operating margin is calculated by dividing a company's operating profit by sales revenues. This measure tells managers how efficiently an organization is using its resources; every successful attempt to reduce costs will be reflected in increased operating profit, for example.

Which of the Following Can Be Inferred from Calculating a Company's