Danny owns two companies where he has recently made changes. The margin of safety ratio for Company X is 42% and the margin of safety ratio for Company Y is 25%. What does this imply about the two companies?

Question

12-08-2020
Business

contestada

Danny owns two companies where he has recently made changes. The margin of safety ratio for Company X is 42% and the margin of safety ratio for Company Y is 25%. What does this imply about the two companies?

Respuesta :

Otras preguntas

An equipment having a first cost of 450000 pesos has a life expectancy of 10 years with final salvage value of P80000. Using the double-declining balance method

What is a mail bomb? A. Sending a massive amount of email to a specific person or system that can cause that user's server to stop functioning. B. A contractu

Match the business strategies with their characteristics. a. Niche b. Imitation c. High-speed strategy x. Based on a belief that time is money y. Concentrates o

Three countries agree to remove barriers to trade between member countries and adopt a common external trade policy toward nonmembers. They also agree to allow

If the 9-inch wheel of cheese costs $18.60, what is the cost per square inch? If the cost is less than a dollar, put a zero to the left of the decimal point.

which is correct usage? Her nervousness had a profound _____ on her ability to play the piano. it _____ me too.

20. What unit of measurement would you choose to measure a. the amount of juice you drank for breakfast? b. the amount of salt you put on French fries? c. the a

Attempting to develop recognition and approval of a brand over time, direct response advertising relies on imagery and message themes that emphasize the benefit

Keynesian economic theory suggests: A. Reducing government involvement in the free-market economy. B. Proposing long-term solutions in order to create wider sw

If r = 9, b = 5, and g= −6, what does (r + b − g)(b + g) equal?

topeadeniran2 topeadeniran2 · Answer 1 · 2020-08-17T04:09:50+02:00

Answer: Company X could lose more business before it will begin experiencing financial difficulties when it is being compared to company Y

Explanation:

Margin of safety ratio simply helps to understand the extent to which there'll be drop in sales before a company will begins to make a loss.

Since the margin of safety ratio for Company X is 42% and the margin of safety ratio for Company Y is 25%, it means that Company X could lose more business before it begins experiencing financial difficulties when it is compared to company Y.