Summary of Findings on Gross Margin, Profit Margin After Tax, Earnings Per Share, Times Interest Earned and Return on Stakeholder Capital for Example Corporation

Assessment 3 – Task 3.4

SUMMARY OF FINDINGS – GROSS MARGIN
• The company has reported the gross margin of 24% in the financial
year of 2017 which is an improvement over the gross margin reported
in 2016 and industry standard of 22%.
• The company is using its material and labour to produce the and sell
products at profit. In spite of the cost of goods sold has increased over
the years but the company has improved its sales revenue significantly.
• The gross profit of Example Corporation would provide the investors
with the confidence and key insight of its actual financial health.

Summary of Findings - Profit
Margin After Tax:
– The ratio shows that the company has reported a net profit margin of 5% for
the financial year ended 2017 while the net profit margin for the industry
standards stands 3.7%.
– This implies that the company has reported the net profit greater than the
industry standards.
– A higher margin of profit margin after tax for Example Corporation shows that
the company has been successful in translating the sales into the profits at the
end of financial year.