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Pick an Income Statement Line Item or Ratio from the list below

  1. https://transformco.com/docs/investor/SHC_2017_For… Use this link for information
  2. Pick an Income Statement Line Item or Ratio from the list below:

Line Item

Ratio

  • Revenue (aka Sales, Turnover)
  • Cost of Goods Sold/Cost of Sales
  • Selling, General and Administrative Expense
  • Gross Profit
  • Operating Profit
  • Net Profit
  • Gross Margin (%)
  • Net Margin (%)
  • Return on Sales
  • Return on Equity
  • Return on Assets
  • Earnings Per Share (EPS)
  • EBITDA
  1. What does this line item or ratio measure and why is it important item for Management to understand this number?
  2. Identify the past 4 years of amounts for your line item or ratio (Note: this will require you to track down additional historical Income Statements to get the older data). Share this data with the class using a data table or chart.
  3. Answer the following questions:
    • What is the trend for this line item or ratio?
    • Has the line item or ratio amount increased or decreased?
    • Is this a “good” thing or a “bad” thing? For this company?
    • What might management do to improve this line item or ratio?

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