English to Spanish Other Economics

When Berry ratios, operating margins, or percentage mark-ups are used to determine the arm's length range for operating profits, it may be appropriate to make adjustments for balance sheet items which can be expected to affect the operating profits in arm's length transactions.
One of the services provided by distributors on behalf of their suppliers and customers is the holding of inventory of goods for sale to their customers and related trade accounts receivable.
These investments in operating assets require capital, and, an uncontrolled distributor will expect to earn a market rate of return on that required capital independent of the additional sales, marketing, and distribution services it provides.