Essay About Gross Profit Margin And Financial Statements

Analyzing Financial Statements
Analyzing Financial StatementsNameInstitutionIntroductionFor 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 MarginYear 2014Year 2015Year 2016Total 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$10,508,000Gross 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