Question

Find the ratios for the given Income Statement

All numbers in thousands

Revenue	12/31/2018	12/31/2017
Total Revenue	243,770,000,000	239,575,376,000
Cost of Revenue	132,390,000,000	129,290,661,000
Gross Profit	111,380,000,000	110,284,715,000
Operating Expenses
Research Development	18,350,000,000	16,355,612,000
Selling General and Administrative	34,140,000,000	38,947,445,000
Non Recurring	-	-		-
Others	-	-
Total Operating Expenses	184,880,000,000	185,930,338,000
Operating Income or Loss	58,890,000,000	53,645,038,000
Income from Continuing Operations
Total Other Income/Expenses Net	2,270,000,000	2,550,929,000
Earnings Before Interest and Taxes	58,890,000,000	53,645,038,000
Interest Expense	-	-655,402,000
Income Before Tax	61,160,000,000	56,195,967,000
Income Tax Expense	16,820,000,000	14,009,220,000
Minority Interest	-	7,278,012,000
Net Income From Continuing Ops	44,340,000,000	42,186,747,000
Non-recurring Events
Discontinued Operations	-	-	-	-
Extraordinary Items	-	-	-	-
Effect Of Accounting Changes	-	-	-	-
Other Items	-	-	-	-
Net Income
Net Income	44,340,000,000	41,344,569,000
Preferred Stock And Other Adjustments	-	-		-
Net Income Applicable To Common Shares	44,340,000,000	41,344,569,000

Answer 1

Followings are the ratios for income statement :

I) Gross margin = Gross profit / sales * 100

2017 = 110,284,715,000 / 239,575,376,000 * 100

2017 = 46.03%

2018 = 111,380,000,000 / 243,770,000,000 * 100

2018 = 45.69%

II) Net margin = Net profit / Sales * 100

2017 = 42,186,747,000 / 239,575,376,000 * 100

2017 = 17.61%

2018 = 44,340,000,000 / 243,770,000,000 * 100

2018 = 18.19%

III) Times interest earned = Earnings before interest & tax / Interest

2017 = 53,645,038,000 / 655,402,000 = 81.85

2018 = Nil interest

Note : Above ratio is calculated using the data provided.

Other ratios like return on equity & earnings per share is not calculated as outstanding shares detail is not given.