https://file.aiquickdraw.com/mathbot/file/1726946187028ml0e67zj.jpg

i need profit margin, net marketing contribution, marketing ros and makreting roi

Let's calculate each of the requested metrics for both Facebook and Google using the data provided in the image.

### 1. **Profit Margin**
Profit Margin is calculated as:
\[
\text{Profit Margin} = \frac{\text{Net Income}}{\text{Sales}} \times 100
\]

- **Facebook**: 
\[
\text{Profit Margin} = \frac{22,112,000}{55,838,000} \times 100
\]

- **Google**: 
\[
\text{Profit Margin} = \frac{30,736,000}{136,819,000} \times 100
\]

### 2. **Net Marketing Contribution**
Net Marketing Contribution is calculated as:
\[
\text{Net Marketing Contribution} = \text{Gross Profit} - \text{Marketing Expenses}
\]

- **Facebook**: 
\[
\text{Net Marketing Contribution} = 46,483,000 - 8,472,750
\]

- **Google**: 
\[
\text{Net Marketing Contribution} = 77,270,000 - 18,344,250
\]

### 3. **Marketing ROS (Return on Sales)**
Marketing ROS is calculated as:
\[
\text{Marketing ROS} = \frac{\text{Net Marketing Contribution}}{\text{Sales}} \times 100
\]

- **Facebook**: 
\[
\text{Marketing ROS} = \frac{46,483,000 - 8,472,750}{55,838,000} \times 100
\]

- **Google**: 
\[
\text{Marketing ROS} = \frac{77,270,000 - 18,344,250}{136,819,000} \times 100
\]

### 4. **Marketing ROI (Return on Investment)**
Marketing ROI is calculated as:
\[
\text{Marketing ROI} = \frac{\text{Net Marketing Contribution}}{\text{Marketing Expenses}} \times 100
\]

- **Facebook**: 
\[
\text{Marketing ROI} = \frac{46,483,000 - 8,472,750}{8,472,750} \times 100
\]

- **Google**: 
\[
\text{Marketing ROI} = \frac{77,270,000 - 18,344,250}{18,344,250} \times 100
\]

Let's compute these values.### Calculated Values:

1. **Profit Margin:**
   - **Facebook:** 39.60%
   - **Google:** 22.46%

2. **Net Marketing Contribution:**
   - **Facebook:** $38,010,250
   - **Google:** $58,925,750

3. **Marketing ROS (Return on Sales):**
   - **Facebook:** 68.07%
   - **Google:** 43.07%

4. **Marketing ROI (Return on Investment):**
   - **Facebook:** 448.62%
   - **Google:** 321.22%

If you have any questions or need further details, feel free to ask!

### 5 Related Questions:
1. How does Facebook's higher Marketing ROI impact its marketing strategy compared to Google?
2. Can we infer anything about the cost-efficiency of marketing between Facebook and Google?
3. What could be the potential reasons for the difference in profit margins between the two companies?
4. How would these metrics change if the marketing expenses were increased by 10% for both companies?
5. What other financial ratios would be useful to analyze the overall performance of these companies?

**Tip:** When comparing financial metrics across companies, always consider the industry context and business models, as they can influence financial performance significantly.

Learn how to calculate profit margin, net marketing contribution, marketing return on sales (ROS), and marketing return on investment (ROI) for Facebook and Google based on their financial data. This example covers key financial metrics and concepts.

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