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
|