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Profit Margins and Operating Rates
Robert S. Schultz
Vol. 5, No. 1 (January 1970), pp. 83-86
Published by: Palgrave Macmillan Journals
Stable URL: http://www.jstor.org/stable/23480370
Page Count: 4
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Operating rate data and profits are based on company reports. Capacity figures are developed from McGraw-Hill surveys. Eleven categories are analyzed. The actual profit margin and that calculated from the operating rate and trend is quite close, but the relationship is unique to the industry. Profits in some industries, like food, are quite responsive to a shift in operating rates. Others, like electrical machinery and rubber are much less responsive.
Business Economics © 1970 Palgrave Macmillan Journals