The net profit ratio is the percentage of revenue remaining after all expenses and preferred stock are paid and that sum subtracted from the total revenue. This percentage shows how profitable the company is, and allows others to evaluate the company based on their profitability.
After doing a trend analysis for the gross profit and the net income that is applicable to the common share I found that the company is on a constantly downward trend from 2013 to 2015. The total revenue has been decreasing and the gross Profit from 2013 to 2014 is down 7% and from 2013 to 2015, the gross profit is down by 28%. For the common shares profit the net income is down 11% from 2013 to 2014 and down 45% comparing 2015 to 2013. Seeing these figures is very discouraging for a stock holder. The company is constantly losing net