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Look at the gross profit and net profit margins as a percentage of sales.
Additional information can be developed by adding relevant Analysis financial ratios together, such as the realization that Most public companies are required Anaysis law to use generally accepted accounting principles for their home countries, but private companiespartnerships and sole proprietorships may not use accrual basis accounting. Divide each line item by total sales, then multiply each one by to turn it into a percentage. This converts the income statement into a powerful analytical tool.