Consider the income statement of XYZ. Calculate its net profit margin in 2018

Income Statement ( in millions)

2018

2017

2016

Revenues

20.50

36.10

52.80

Cost of goods sold

13.33

23.47

34.32

Gross profit

7.18

12.64

18.48

SG&A

4.1

7.22

10.56

EBITDA

3.08

5.42

7.92

Depreciation

1.03

1.81

2.64

EBIT

2.05

3.61

5.28

Interest expense

0.125

0.125

0.125

Pretax income

1.93

3.49

5.16

Tax expense (25%)

0.48

0.87

1.29

Net income

1.44

2.61

3.87

8.1%

7.0%

6.5%

9.9%