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€ million Note 2016 2015
Sales revenue 1 217,267 213,292
Cost of sales 2 -176,270 -179,382
Gross profit 40,997 33,911
Distribution expenses 3 -22,700 -23,515
Administrative expenses 4 -7,336 -7,197
Other operating income 5 13,049 12,905
Other operating expenses 6 -16,907 -20,171
Operating result 7,103 -4,069
Share of profits and losses of equity-accounted investments 7 3,497 4,387
Finance costs 8 -3,247 -2,393
Other financial result 9 -61 773
Financial result 189 2,767
Earnings before tax 7,292 -1,301
Income tax income/expense 10 -1,912 -59
Current -3,273 -2,859
Deferred 1,361 2,800
Earnings after tax 5,379 -1,361
of which attributable to
Noncontrolling interests 10 10
Volkswagen AG hybrid capital investors 225 212
Volkswagen AG shareholders 5,144 -1,582
Basic earnings per ordinary share in € 11 10.24 -3.20
Diluted earnings per ordinary share in € 11 10.24 -3.20
Basic earnings per preferred share in € 11 10.30 -3.09
Diluted earnings per preferred share in € 11 10.30 -3.09
What is the Profit Margin Ratio for 2016 and 2015? (Net income/Net sales)
Expert Answer
| $ ‘mn | ||
| Particulars | 2016 | 2015 |
| Sales | 217,267.00 | 213,292.00 |
| Cost of Sales | (176,270.00) | (179,382.00) |
| Gross Profit | 40,997.00 | 33,910.00 |
| Distributionexpenses | (22,700.00) | (23,515.00) |
| Administrativeexpenses | (7,336.00) | (7,197.00) |
| Otheroperatingincome | 13,049.00 | 12,905.00 |
| Otheroperatingexpenses | (16,907.00) | (20,171.00) |
| Operating profit | 7,103.00 | (4,068.00) |
| Income on Investments | 3,497.00 | 4,387.00 |
| Financecosts | (3,247.00) | (2,393.00) |
| Otherfinancialresult | (61.00) | 773.00 |
| Earningsbeforetax | 7,292.00 | (1,301.00) |
| Incometaxincome/expense | (1,912.00) | (59.00) |
| Earning After Tax | 5,380.00 | (1,360.00) |
| Profit Margin Ratio (Earning after tax/Sales) |
0.02 | (0.01) |
