Income statement analysis

Income statement analysis Student Help In the video on income statement analysis, they discussed trends.   Please pick an industry and find out a trend within that industry and  discuss what the trend is and what analysis was used to spot the trend.   Please be sure to provide links to your research.
Post by classmate

Don’t use plagiarized sources. Get Your Custom Essay on
Income statement analysis
Just from $9/Page

Order Essay

 
An industry with an Operating Margin (OM) trend is the U.S.  retirement and pension plans industry. Operating margin is an analytical  method of measuring the amount of profit a company makes on each dollar  of sales after paying for the costs of production. Some examples of  those costs are wages and raw materials. Those costs are assessed prior  to paying interest or tax. This analysis formula is a company’s  operating income divided by its net sales/revenue. For these purposes,  higher ratios are usually preferred because that reflects that the  company is efficient in its operations and is good at converting sales  into profits. Adam Hayes from Investopedia summarizes this with, “A  company’s operating margin, sometimes referred to as return on sales  (ROS), is a good indicator of how well it is being managed and how  efficient it is at generating profits from sales.” (Hayes, 2021, p. 1)  Analysis that led to spotting this trend was the discovery of strong  investment gains and steady growth in contributions in this industry  over the last five years. In 2017, revenue growth was predominantly  strong and increased to 115.6% due to significant equity gains. It is  likely relevant to take note of what changed in 2016 to positively  affect those increases.  Those gains were maintained through 2020. This  increase in contributions led to the observation that the margin between  operating income and revenue has increased. This uptick is expected to  maintain through 2021 at a rate of 19.1%, but that seems like a very  unreliable prediction. A lot has changed in 2021 which affects national  and international economics. (IBIS, 2021)
References
Hayes, A. (2021). Operating Margin. Investopedia. Retrieved from https://www.investopedia.com/terms/o/operatingmargin.asp (Links to an external site.)
IBIS, W. (2021). Industries with the Highest Profit Margin in the US in 2021. IBIS World. Retrieved from https://www.ibisworld.com/united-states/industry-trends/?ctid=1&ltid=12&ksid=1&ismm=0

Continue to order
Get a quote

Post navigation
Problems and Questions for ModuleIdeal Work Environment

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 3234125597

Feel free to ask questions, clarifications, or discounts available when placing an order.