I am trying to calculate a profit margin. I know a basic formula (Net Income / S

Question

I am trying to calculate a profit margin. I know a basic formula (Net Income / Sales), but I am lost with this income statement.

In millions

OperativeRevenues Competitive business revenues 17,360 Rate-regulated utility revenues    16,171 Total operating revenues 33,531 OperatingExpenses Competitive business purchased power and fuel 9,668 Rate-regulated utility purchased power and fuel 4,367 Operating and maintenance 10,126 Depreciation and amortization 3,828 Taxes other than income 1,731 Total operating expenses 29,720 Gain on sales of assets 3 Bargain purchase gain 233 Gain on deconsolidation of business 213 Operating income 4,260 Other Income and (Deductions) Interest expense, net -1,524 Interest expense to affiliates -36 Other, net 1,056 Total other income and deductions -504 Income before income taxes 3,756 Income taxes -125 Equity in losses of unconsolidated                                                     affiliates -32 Net Income 3,849 Net Income(loss) attributable to noncontrolling interests and pref.        stock dividends 79 Net income attributble to common Sharehoulders 3,770 Comprehensivice income, Net of income taxes 3,849 --- --- Average shares of common stock outstanding Basic 947 Deluted 949

Explanation / Answer

Calculation of profit margin:

Profit margin= net income/ sales*100

Net income = $3849

Sales= revenue= $33531

Profit margin= 3849/33531*100= 11.48%

Profit margin= 11.48%

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