Gross profit margin Gross profit margin= Gross profit' revenue*100 Year Gross profit Revenue Gross profit margin Net profit margin 2020 4,163,172 23,788,371 17.5008% 2019 3,339,697 22,337,248 14.9512% 2018 | 3,456,925 |23,707,285 14.5816% Net profit margin= net profit' revenue*100 Year Net profit Revenue Net profit margin 2020 445,767 | 23,788,371 1.8738% 2019 236,336 22,337,248 1.0580% 2018 300,332 |23,707,285 | 1.2668% Return on Assets ROA = Net Profit Total Assets Year Net profit Total assets ROA Return on Equity 2020 445,767 26,507,928 0.0168 2019 236,336 | 25,944,712 0.0091 2018 300,332 26,751,055 0.0112 ROE= Net Profit/Stockholder Equity Year Net profit |Stockholder Equity ROE 2020 445,767 |11,239,256 0.0396 2019 236,336 10,692,928 0.0221 2018 300,332 10,513,559 0.0285 Earnings Per Share EPS = Net Profit/Number of Common Shares Outstanding Year Net profit Number of Common Shares Outstanding EPS 2020 445,767 9,250,000 2019 236,336 | 9,250,000 2018 300,332 9,250,000 | 0.0481 0.0255 0.0324

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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interpret and analyze the ratios

Gross profit margin
Gross profit margin= Gross profit' revenue*100
Year
Gross profit
Revenue
Gross profit margin
Net profit margin
2020
2019
2018
4,163,172
23,788,371
3,339,697
22,337,248
14.9512%
3,456,925
23,707,285
17.5008%
14.5816%
Net profit margin= net profit/ revenue*100
Year
Net profit
Revenue
Net profit margin
2019
236,336
| 22,337,248
1.0580%
2020
2018
445,767
23,788,371
1.8738%
300,332
23,707,285
1.2668%
Return on Assets
ROA = Net Profit/Total Assets
Year
Net profit
Total assets
2020
445,767
26,507,928
2019
236,336
25,944,712
2018
300,332
26,751,055
0.0112
ROA
0.0168
0.0091
Return on Equity
ROE= Net Profit/Stockholder Equity
Year
Net profit
Stockholder Equity
2020
445,767
11,239,256
0.0396
2019
236,336
10,692,928
2018
300,332
10,513,539
0.0285
ROE
0.0221
Earnings Per Share
EPS = Net Profit/Number of Common Shares Outstanding
Year
Net profit
2020
445,767
9,250,000
2019
236,336
9,250,000
2018
300,332
9,250,000
Number of Common
Shares Outstanding
EPS
0.0481
0.0255
0.0324
Transcribed Image Text:Gross profit margin Gross profit margin= Gross profit' revenue*100 Year Gross profit Revenue Gross profit margin Net profit margin 2020 2019 2018 4,163,172 23,788,371 3,339,697 22,337,248 14.9512% 3,456,925 23,707,285 17.5008% 14.5816% Net profit margin= net profit/ revenue*100 Year Net profit Revenue Net profit margin 2019 236,336 | 22,337,248 1.0580% 2020 2018 445,767 23,788,371 1.8738% 300,332 23,707,285 1.2668% Return on Assets ROA = Net Profit/Total Assets Year Net profit Total assets 2020 445,767 26,507,928 2019 236,336 25,944,712 2018 300,332 26,751,055 0.0112 ROA 0.0168 0.0091 Return on Equity ROE= Net Profit/Stockholder Equity Year Net profit Stockholder Equity 2020 445,767 11,239,256 0.0396 2019 236,336 10,692,928 2018 300,332 10,513,539 0.0285 ROE 0.0221 Earnings Per Share EPS = Net Profit/Number of Common Shares Outstanding Year Net profit 2020 445,767 9,250,000 2019 236,336 9,250,000 2018 300,332 9,250,000 Number of Common Shares Outstanding EPS 0.0481 0.0255 0.0324
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