Unformatted text preview: that their operating profit margin seems to have declined. This is caused by having an increase in depreciation and having to deal with other operating expenses. This reason kind of sheds a little more light on the above suggestion that their main problem is an increase in plant, property, and equipment. The company also had an increase in their interest expenses as well as their leasing payments and that means more bills and less profit. And lastly another huge reason for profitability issues is that the profit margins have decreased. This causes the company to have to pay increased taxes over the years....
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- Spring '10
- Generally Accepted Accounting Principles, operating profit margin