Question
Telecom Services Ltd. provides the following comparative financial data for the years ended December 31, 2021, 2020, and 2019. Description 2021 2020 2019 Revenue $16,000,000
Telecom Services Ltd. provides the following comparative financial data for the years ended December 31, 2021, 2020, and 2019.
Description | 2021 | 2020 | 2019 |
Revenue | $16,000,000 | $15,500,000 | $15,000,000 |
Cost of Goods Sold | $9,600,000 | $9,300,000 | $9,000,000 |
Gross Profit | $6,400,000 | $6,200,000 | $6,000,000 |
Operating Expenses | $3,200,000 | $3,100,000 | $3,000,000 |
Operating Income | $3,200,000 | $3,100,000 | $3,000,000 |
Interest Expense | $640,000 | $620,000 | $600,000 |
Earnings Before Tax | $2,560,000 | $2,480,000 | $2,400,000 |
Tax Expense | $512,000 | $496,000 | $480,000 |
Net Income | $2,048,000 | $1,984,000 | $1,920,000 |
Requirements:
- Calculate the Gross Profit Margin for each year.
- Determine the Operating Margin for each year.
- Compute the Net Profit Margin for each year.
- Evaluate the company's financial performance over the three years.
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