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characteristics during the fiscal years at issue are set out
below:
Ratio of Net
gross Net income/
profits income/ loss as a Return on
Guideline co. to sales loss percentage equity
and year (percent) (million) of sales (percent)
NBTY, Inc.
1995 40 $5.4 3.2 6.6
1996 49 9.5 5.0 10.4
National Health
1995 53 (0.5) -15.7 -17.5
1996 9 (2.9) -66.5 -86.6
Natural
1995 29 2.0 5.4 15.3
1996 28 3.2 6.8 18.18
Nutritional 21
1995 73 0.5 4.1 4.5
1996 61 (4.4) -27.7 -25.9
Reliv’
1995 78 1 3.4 18.5
1996 38 (10) -31.2 -188.1
Average 1995 55 1.68 0.08 5.9
Average 1996 37 (0.92) -22.72 -54.4
Fourth, Mr. Hakala stated a CEO may be entitled to increased
compensation during a year when his or her company earns higher
profits. He opined that petitioner was more profitable than all
five companies in terms of the ratio of net income to sales (net
margin). Petitioner’s net margins for the fiscal years at issue
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