Accounting question, Gross profit ratio and profit margin ratio?

Posted: 27-08-2010 | Author: admin | Category: Other - Business & Finance


On its income statement for the fiscal year ended March 31, 2008, Alien Technology showed Net Sales of $15,491 million, Cost of Sales of $12,465 million, and Net Earnings of $2,541 million. (dollars in millions.)
looking for the gross profit ratio and profit margin ratio.

Category: Other - Business & Finance by admin

One Response to “Accounting question, Gross profit ratio and profit margin ratio?”

  1. EJMA (Philippines), on August 29th, 2010 at 11:37 pm Said:

    Gross profit = Net Sales – Cost of Sales
    Gross profit rate = Gross Profit / Net Sales

    Net Sales $15491M (100%)
    Cost of Sales $12465M (80.466%)
    Gross Profit $3026M (19.534%)

    Therefore, GP rate = 19.534%

    For any accounting question, e-mail me at

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