Director: Can we go over some figures please?
Assistant: Yes, our shareholders' meeting is soon. I think it'd be a good idea to review the key numbers.
Director: What has our total outlay been this year?
Assistant: Our expenditures are estimated at $4,320,000.
Director: What percentage is that is research and development?
Assistant: About 27%. We've invested heavily in developing some new technologies.
Director: What is our gross operating profit?
Assistant: Approximately 1.4 million.
Director: What kind of margin does that represent?
Assistant: The gross operating margin is at 24% for the year.
Director: That's impressive. That's up from last year, isn't it? About 10 points I think.
Assistant: That's right. We're solidly in the black. As a matter of fact, this is our fifth year straight.
Director: Shareholders will be happy.
Assistant: They should be! This kind of growth in the current market is remarkable.
Director: Hopefully the shareholders won't veto any further R & D allocation.
Assistant: I think they trust the board to continue doing the right thing.
R & D - Research and Development
gross operating profit
gross operating margin
to be up
in the black - in the red
Check your understanding with this multiple choice comprehension quiz.
By Kenneth Beare, About.com Guide