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Given the financial statements (Balance Sheet, Income Statement) for a publicly traded company. Calculate the profitability ratio to find the gross profit ratio and the Net profit ratio.

Given the financial statements (Balance Sheet, Income Statement) for a publicly traded company. Calculate the profitability ratio to find the gross profit ratio and the Net profit ratio.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1. Given the financial statements (Balance Sheet, Income Statement) for a publicly traded company. Calculate the profitability ratio to find the gross profit ratio and the Net profit ratio. 

 

Revenues Subscription solutions Merchant solutions Shopify Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Expressed in US $000's, except share and per share amounts, unaudited) Cost of revenues Subscription solutions Merchant solutions Gross profit Operating expenses Sales and marketing Research and development General and administrative Transaction and loan losses Total operating expenses (Loss) income from operations Other income, net Income before income taxes (Provision for) recovery of income taxes Net income Other comprehensive (loss) income Comprehensive income Net income per share attributable to shareholders: Basic Diluted Shares used to compute net income per share attributable to shareholders: Basic Diluted Three months ended September 30, September 30, 2021 2020 $ $ 336,208 787,532 1,123,740 67,355 447,476 514,831 608,909 237,949 221,028 128,722 25,311 613,010 (4,101) 1,344,553 1,340,452 (192,020) 1,148,432 (9,193) 1,139,239 9.18 9.00 125,071,460 127,619,188 245,274 522,131 767,405 52,170 310,087 362,257 405,148 147,608 143,427 51,799 11,753 354,587 50,561 135,806 186,367 4,701 191,068 4,190 195,258 1.59 1.54 120,511,484 124,908,279 Nine months ended September 30, 2021 $ 991,126 2,240,706 3,231,832 188,764 1,254,583 1,443,347 1,788,485 626,082 580,471 273,790 53,903 1,534,246 254,239 3,375,072 3,629,311 (343,341) 3,285,970 (14,660) 3,271,310 26.44 25.84 124,297,069 127,263,746 September 30, 2020 $ 629,317 1,322,430 1,951,747 134,282 780,333 914,615 1,037,132 447,320 393,050 179,948 39,202 1,059,520 (22,388) 152,999 130,611 65,026 195,637 (1,790) 193,847 1.65 1.59 118,692,898 123,399,606
Transcribed Image Text:Revenues Subscription solutions Merchant solutions Shopify Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Expressed in US $000's, except share and per share amounts, unaudited) Cost of revenues Subscription solutions Merchant solutions Gross profit Operating expenses Sales and marketing Research and development General and administrative Transaction and loan losses Total operating expenses (Loss) income from operations Other income, net Income before income taxes (Provision for) recovery of income taxes Net income Other comprehensive (loss) income Comprehensive income Net income per share attributable to shareholders: Basic Diluted Shares used to compute net income per share attributable to shareholders: Basic Diluted Three months ended September 30, September 30, 2021 2020 $ $ 336,208 787,532 1,123,740 67,355 447,476 514,831 608,909 237,949 221,028 128,722 25,311 613,010 (4,101) 1,344,553 1,340,452 (192,020) 1,148,432 (9,193) 1,139,239 9.18 9.00 125,071,460 127,619,188 245,274 522,131 767,405 52,170 310,087 362,257 405,148 147,608 143,427 51,799 11,753 354,587 50,561 135,806 186,367 4,701 191,068 4,190 195,258 1.59 1.54 120,511,484 124,908,279 Nine months ended September 30, 2021 $ 991,126 2,240,706 3,231,832 188,764 1,254,583 1,443,347 1,788,485 626,082 580,471 273,790 53,903 1,534,246 254,239 3,375,072 3,629,311 (343,341) 3,285,970 (14,660) 3,271,310 26.44 25.84 124,297,069 127,263,746 September 30, 2020 $ 629,317 1,322,430 1,951,747 134,282 780,333 914,615 1,037,132 447,320 393,050 179,948 39,202 1,059,520 (22,388) 152,999 130,611 65,026 195,637 (1,790) 193,847 1.65 1.59 118,692,898 123,399,606
Assets Current assets Cash and cash equivalents Marketable securities Trade and other receivables, net Merchant cash advances, loans and related receivables, net Income taxes receivable Other current assets Long-term assets Property and equipment, net Intangible assets, net Right-of-use assets, net Deferred tax assets Shopify Inc. Condensed Consolidated Balance Sheets (Expressed in US $000's except share amounts, unaudited) Equity and other investments ($3,916,910 and $nil, at fair value) Goodwill Total assets Liabilities and shareholders' equity Current liabilities Accounts payable and accrued liabilities Income taxes payable Deferred revenue Lease liabilities Long-term liabilities Deferred revenue Lease liabilities Convertible senior notes Deferred tax liabilities Commitments and contingencies Shareholders' equity Common stock, unlimited Class A subordinate voting shares authorized, 113,607,328 and 110,929,570 issued and outstanding; unlimited Class B multiple voting shares authorized, 11,967,828 and 11,599,301 issued and outstanding Additional paid-in capital Accumulated other comprehensive (loss) income Retained earnings Total shareholders' equity Total liabilities and shareholders' equity September 30, 2021 $ As at 2,189,613 5,329,081 151,773 524,020 57,372 80,892 8,332,751 91,787 141,929 123,414 52,073 4,445,132 349,432 5,203,767 13,536,518 350,588 26,498 203,853 15,618 596,557 174,483 174,190 910,376 310,635 1,569,684 7,930,690 136,024 (5,890) 3,309,453 11,370,277 13,536,518 December 31, 2020 S 2,703,597 3,684,370 120,752 244,723 56,067 68,247 6,877,756 92,104 135,676 119,373 52,677 173,454 311,865 885,149 7,762,905 300,795 19,677 107,809 10,051 438,332 21,006 144,836 758,008 923,850 6,115,232 261,436 8,770 15,285 6,400,723 7,762,905
Transcribed Image Text:Assets Current assets Cash and cash equivalents Marketable securities Trade and other receivables, net Merchant cash advances, loans and related receivables, net Income taxes receivable Other current assets Long-term assets Property and equipment, net Intangible assets, net Right-of-use assets, net Deferred tax assets Shopify Inc. Condensed Consolidated Balance Sheets (Expressed in US $000's except share amounts, unaudited) Equity and other investments ($3,916,910 and $nil, at fair value) Goodwill Total assets Liabilities and shareholders' equity Current liabilities Accounts payable and accrued liabilities Income taxes payable Deferred revenue Lease liabilities Long-term liabilities Deferred revenue Lease liabilities Convertible senior notes Deferred tax liabilities Commitments and contingencies Shareholders' equity Common stock, unlimited Class A subordinate voting shares authorized, 113,607,328 and 110,929,570 issued and outstanding; unlimited Class B multiple voting shares authorized, 11,967,828 and 11,599,301 issued and outstanding Additional paid-in capital Accumulated other comprehensive (loss) income Retained earnings Total shareholders' equity Total liabilities and shareholders' equity September 30, 2021 $ As at 2,189,613 5,329,081 151,773 524,020 57,372 80,892 8,332,751 91,787 141,929 123,414 52,073 4,445,132 349,432 5,203,767 13,536,518 350,588 26,498 203,853 15,618 596,557 174,483 174,190 910,376 310,635 1,569,684 7,930,690 136,024 (5,890) 3,309,453 11,370,277 13,536,518 December 31, 2020 S 2,703,597 3,684,370 120,752 244,723 56,067 68,247 6,877,756 92,104 135,676 119,373 52,677 173,454 311,865 885,149 7,762,905 300,795 19,677 107,809 10,051 438,332 21,006 144,836 758,008 923,850 6,115,232 261,436 8,770 15,285 6,400,723 7,762,905
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