Vertical Income Statement Analysis:
a)Trend in Net Income:
Referring to the above conducted vertical analysis of the company, we find that over the years, the net profit margins of the company has improved, although a marginal declined was witnessed during the year 2013. By the end of the financial year of 2011, the company had Net Profit Margin of 13.22%, which later increased to 15.99% during 2012. This significant improvement in net margins was possible because of reduced percentage of proportion of COGS to total sales which during 2012, decreased from 47.16% to 46.70%. Important to note that ...