Margin Strategy - SMR Number

Margin Ratios are important ratios to compare the performance values with sales, or total assets. The Net profit or operating profit numbers presented alone do not portray the full picture of the performance. The rate of increase in sales along with Return on equity is equally important parameters. The SMR number essentially combines these three numbers and thus provides a better view of the company's performance. The higher the SMR Number, the better the company performance.