Analyzing Financial Statements
Autor: Rocky Muzica • August 30, 2016 • Coursework • 396 Words (2 Pages) • 784 Views
Analyzing Financial Statements
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Institution
Introduction
For this week assignment I have chosen (Proctor and Gamble) PG, a Company that produces several house hold items. Indeed PG has something that can be used for every home, which made me to select the company for this week discussion. In this report, an analysis on various ratios that include gross profit margin, operating income margin, and net income margin will be calculated for the years between 2013 and 2015.
Gross Profit Margin
Year 2014 | Year 2015 | Year 2016 | |
Total Revenue Cost of Revenue Gross Profit Operating income Net Income | $74,401,000 $39,030,000 $35,371,000 $13,910,000 $11,643,000 | $70,749,000 $37,056,000 $ 33,693,000 $11,049,000 $7,036,000 | $65,299,000 $32,909,000 $ 32,390,000 $13,441,000 $10,508,000 |
Gross Margin Ratio = (Revenue- Cost of Revenue)/Revenue (Kohansal,et al, 2013).
FY14 GPM =$35,371,000/$74,401,000=47.54%
FY15 GPM =$ 33,693,000/$70,749,000=47.62%
FY16GPM =$ 32,390,000/$65,299,000=49.60%
Operating profit margin
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