If two companies both increase their net income by 25% over the prior year this means they have both been equally profitable this year.

Question

Quizplus · Accepted Answer

Two companies increasing their net income by 25% does not necessarily mean they have been equally profitable. The starting point of their net incomes could have been vastly different, and there are other factors such as expenses and investments that can affect overall profitability.

If Two Companies Both Increase Their Net Income by 25