Profitability Analysis
Autor: viki • September 2, 2011 • Essay • 4,135 Words (17 Pages) • 1,916 Views
Profitability Analysis
Gross Profit Margin compares an entity's gross profit to its sales revenue, reflecting the proportion of sales revenue that ends up as profit.
It is calculated by: Gross Profit x 100
Sales Revenue
2009 2008
30707 x 100
3634324
= 0.8 %
22532 x 100
5370244
= 0.4 %
China Aviation Oil:
2009 2008
82054 x 100
285129
= 28.8 %
111353 x 100
470940
= 23.6 %
Royal Dutch Shell:
We can determine that Shell's gross profits are significantly higher than China Aviation Oil's in both 2008 and 2009.
Profit Margin reveals what percentage of sales revenue dollars result in Earnings before Interest and Tax (EBIT).
It is calculated by: EBIT x 100
Sales Revenue
2009 2008
45199 x 100
3634324
= 1.2
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