Compute firms gross profit margin and net income margin

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Reference no: EM131307023

Using the income statement you found, compute your chosen firm's gross profit margin, operating income margin, and net income margin (using the equations found in this module's instruction) for the past 3 years. Include the numerator and denominator for each ratio. After you report the ratios, please discuss the economic interpretation of your results. You might want to read the instructor's sample post before you begin.

United Airlines
Income Statement
All numbers in thousands

Revenue

?12?/?31?/?2015


?12?/?31?/?2014

?12?/?31?/?2013

Total Revenue

37,864,000


38,901,000

38,279,000

Cost of Revenue

12,130,000


16,611,000

17,192,000

Gross Profit

25,734,000


22,290,000

21,087,000


Operating Expenses

Research Development

-


-

-

Selling General and Administrative

18,423,000


17,795,000

17,629,000

Non Recurring

326,000


443,000

520,000

Others

1,819,000


1,679,000

1,689,000

Total Operating Expenses

-


-

-

Operating Income or Loss

5,166,000


2,373,000

1,249,000


Income from Continuing Operations

Total Other Income/Expenses Net

-327,000


-562,000

24,000

Earnings Before Interest and Taxes

4,839,000


1,811,000

1,273,000

Interest Expense

620,000


683,000

734,000

Income Before Tax

4,219,000


1,128,000

539,000

Income Tax Expense

-3,121,000


-4,000

-32,000

Minority Interest

-


-

-

Net Income From Continuing Ops

7,340,000


1,132,000

571,000


Non-recurring Events

Discontinued Operations

-


-

-

Extraordinary Items

-


-

-

Effect Of Accounting Changes

-


-

-

Other Items

-


-

-


Net Income

Net Income

7,340,000


1,132,000

571,000

Preferred Stock And Other Adjustments

-


-

-

Net Income Applicable To Common Shares

7,340,000


1,132,000

571,000

Reference no: EM131307023

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