Reading Financial Reports For Dummies by Lita Epstein

Author:Lita Epstein
Language: eng
Format: epub, pdf
ISBN: 9781118761939
Publisher: Wiley
Published: 2013-12-08T15:39:59+00:00

You find the net profit at the bottom line of the income statement; it may also be called net income or net loss. Net sales or revenue is on the top line of the income statement.

You can calculate the net profit margin using numbers from Mattel's income statement:

$776,464,000 (Net profit) ÷ $6,420,881,000 (Net sales) = 12.1% (Net profit margin)

Mattel made a net profit of 10.05 percent on each dollar of sales. Now calculate Hasbro's net profit margin using numbers from its income statement:

$335,999,000 (Net profit) ÷ $4,088,983 (Net sales) = 8.2% (Net profit margin)

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