It is not possible for a company with a high profit margin to have a low operating profit.

Question

Quizplus · Accepted Answer

A company's profit margin is calculated as the ratio of net income to revenue, while the operating profit is the income earned from operations before taking into account non-operating income and expenses. It is possible for a company to have a high profit margin due to factors such as high revenue or cost management, but still have a low operating profit if there are significant non-operating expenses or losses that are not reflected in the profit margin calculation. Therefore, it is possible for a company with a high profit margin to have a low operating profit.

It Is Not Possible for a Company with a High