Comparison of Different Companies Within Four Different Industries

ACC 230 Assignment Week 4

Complete Problem 3.13 on p 111

Mary Adams

April 29,2012

In the assignment we were ask to find the income statement for a pharmaceutical, technology, retail-groceries, and an automobile manufacturer company and to calculate the net profit margin, operating profit margin, and gross profit margin for each using two different companies from each industry. From the automobile manufacturer industry I choose Ford Motor Company and General Motors Company. The data for my problem is for fiscal year ending December31, 2011. Ford Motor Company’s net profit margin is 14.83%, operating profit margin is 8.34%, and gross profit margin is -6.63%. General Motors Company’s net profit margin is 1.90%, operating profit margin is 1.18%, and gross profit margin is -6.28%. For the retail-groceries industry, I choose Publix and Winn Dixie. The net profit margin is -5.48%, operating profit margin is -7.85%, and the gross profit margin is -1.45% for Publix supermarkets. For Winn Dixie supermarkets the net profit margin is -0.01%, operating margin is 1.00%, and the gross profit margin is -1.58%. The pharmaceutical companies I choose are Merck and Company Inc. and Johnson and Johnson. The net profit margin is 10.33%, operating profit margin is 15.96%, and gross profit margin is 24.6% for Merck Co. Inc.. For Johnson and Johnson the net profit margin is 14.87%, operating profit margin is 23.96%, and the gross profit is 54.42%. The two technology companies I choose were Hewlett Packard and Lenovo Group. For Hewlett Packard the net profit margin is 5.56%, operating profit margin is 7.60%, and the gross profit margin is -2.28%. The net profit margin is 2.96%, operating margin is 3.23%, and the gross profit margin is -4.67% for Lenovo Group.

The two companies in the automobile industry shows a gross profit margin difference of .15% which reflects to me that the economy has affected the profit margin of auto industry in much the same manner for different companies....