);

COGS : Net Profit

COGS:Net Profit This ratio is as per the COGS:EBITDA measure, but with the effects of depreciation and accounting choices also taken into account.

For instance, if COGS:Net Profit is falling, but Expenses:EBITDA is stable, this may indicate that depreciation expense is increasing, which in turn could either mean a capital investment program (which could be positive for the business) or change in depreciation policy (which could have a negative impact).

This measure should also be assessed in conjunction with changes in other expenses, which may indicate if financing costs are increasing. For example, the Debt : Equity measure could be checked to confirm if this is the case.

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