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Profit Margins and Operating Rates

Robert S. Schultz
Business Economics
Vol. 5, No. 1 (January 1970), pp. 83-86
Stable URL: http://www.jstor.org/stable/23480370
Page Count: 4
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Profit Margins and Operating Rates
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Abstract

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.

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