Taking an underlying basis is their total profit in the beginning of the analysis of SøstreneGrenes internal and external factors.
In the financial year 2017/2018 SøstreneGrene has a turnover of almost DKK 900 million, since past years their revenue has almost grown by 50%.
The surplus before taxes has almost doubled and was close to DKK 78 million.
By looking at appendix 1. taking an underlying basis in profit margin ratio.
We can see by looking at the years 2015/2016 to 2016/2017 that the profit margin ratio has decreased with 3,6%. This is a result of a bigger surplus the year before, whereas the costs increased which concluded that the profit margin ratio decreased.
But now looking at the years, from 2016/2017 to 2017/2018 the profit margin ratio has an increase of 5%. This can be caused by a big increase in the revenue. Which in 2017/2018 was at DKK 893,653 million.
With the revenue almost being double from the past two years, the assets turnover rate has been increasing all the years.
But not only the asset turnover rate, but also the assets in total have been increasing in total, which causes the revenue to increase as well.
SøstreneGrene also has their costs under control now, this will help them get to where they want to be and get a profit margin ratio of 12,8% in 2017/2018.