Brady Corporation is a leader in identification, safety, and material solutions. In 1998, the firm was hit hard by faltering foreign markets, so it embarked upon an aggressive campaign to redesign its cost structure. The firm believes this will help it to enhance future stockholder value. Brady follows the concept of Shareholder Value Enhancement (SVE), which is improved through increased sales, cost control, and effective use and control of assets.

Question

Brady Corporation is a leader in identification, safety, and material solutions. In 1998, the firm was hit hard by faltering foreign markets, so it embarked upon an aggressive campaign to redesign its cost structure. The firm believes this will help it to enhance future stockholder value. Brady follows the concept of Shareholder Value Enhancement (SVE), which is improved through increased sales, cost control, and effective use and control of assets. 
Calculate and interpret Brady's gross margin (Net Sales-Cost of Goods Sold)/Net Sales) for the years 1999, 2000, and 2001. What conclusions, if any, can you draw from analyzing these gross margins? 
b.