Question
I am trying to calculate a profit margin. I know a basic formula (Net Income / Sales), but I am lost with this income statement.
In millions
OperativeRevenues Competitive business revenues 17,360 Rate-regulated utility revenues 16,171
Total operating revenues 33,531
OperatingExpenses Competitive business purchased power and fuel 9,668 Rate-regulated utility purchased power and fuel 4,367 Operating and maintenance 10,126 Depreciation and amortization 3,828 Taxes other than income 1,731
Total operating expenses 29,720 Gain on sales of assets 3 Bargain purchase gain 233 Gain on deconsolidation of business 213 Operating income 4,260 Other Income and (Deductions) Interest expense, net -1,524 Interest expense to affiliates -36 Other, net 1,056 Total other income and deductions -504 Income before income taxes 3,756 Income taxes -125 Equity in losses of unconsolidated affiliates -32
Net Income 3,849 Net Income(loss) attributable to noncontrolling interests and pref. stock dividends 79 Net income attributble to common Sharehoulders 3,770 Comprehensivice income, Net of income taxes 3,849 --- --- Average shares of common stock outstanding Basic 947 Deluted 949
Explanation / Answer
Calculation of profit margin:
Profit margin= net income/ sales*100
Net income = $3849
Sales= revenue= $33531
Profit margin= 3849/33531*100= 11.48%
Profit margin= 11.48%