Acc 230 Week 4 Checkpoint Anykizing Income Statements

In my opinion I find that there are a few things that I would want to look at to see how well the profitability of Kodak has been doing. These things are as follows; I would want to look at the Gross Profit Margin, Net Profit Margin, Interest to Sales, Asset turnover, and the return on Assets. I can figure this information out by doing some simple math. For example;

Gross 2004 2003 2002

Profit margin=

13517-9548/13517 = 29.3% 12909-8734/12909= 32.3% 12549-8022/12549=36.07%

Profit margin was better in 2002 and looks like it has been declining ever since.

Net

Profit Margin=

556/13517 =4.1% 253/12909=1.95 or 2% 770/12549=6.1%

The net profit margin has been going up and down since 2002 not very steady in my opinion.

Interest to sales=

168/13517 =1.2% 147/12909=1.1% 173/12549=1.3%

There does not seem to be much of a difference in this area. Interest to sales needs more improvement in this area.

Asset Turnover=

13517/14737 =91.7% 12909/14846=86.9% 12549/13494=92.9%

Return on Assets=

-87/14737 = -.5% 302/14846=2% 1168/13494=8.65%

From what I can gather off of all the financial sheets is that the COGS went down instead of going upwards which in turn made the gross profit to decease. There seemed to be some savings in operation expenses but on the flip side there was an increase in research and developing cost in 2004. I can see at least one good thing and that is because of the company s discontinue of operations their earnings per share went to $1.94 that was about 120% more then the year before. But the earnings from continuing operations had a major decline in 2004 of about 58%. Therefore the earning per share there was only about $.28. When compare the earnings of both 2004 and 2003 the continuing operations had lesser dividends than in 2004. Some areas had a stable growth and others could use some improvements.

(please let me know if I did any of this correctly, couldn’t figure out what...