DowChemical Company: Annual Financial Statement
Thecompany’s sales in 2010, 2011, 2012, 2013 and 2014 were $53.67billion, $59.99 billion, $56.79 billion, $57.14 billion and $58.23billion respectively. The figures reflect the value of the firm’ssell of its products and services. The cost of goods sold (COGS) orthe cost of sales of the company for the five years was $46.13billion, $51.31 billion, $48.17 billion, $47.89 billion and $47.68billion respectively. The costs refer to the expenses that thecompany incurred in raw materials, manufacturing overhead and laborin producing its chemicals. During the four years and following thedepreciation and amortization expenses, Dow’s gross profits for thefive years were $7.54 billion, $8.68 billion, $8.62 billion, $9.26billion and $10.55 billion respectively. The figures represent thecompany’s gross margin or gross income. As a matter of fact, thefigures represent the difference between the net sales and the costof goods sold. A company that has a greater difference has a higherchance of attaining a positive bottom line.
Thepretax income figures for the five years were $2.8 billion, $3.6billion, $1.67 billion, $6.8 billion and $5.27 billion respectively.Following the deductions made on the firm’s expenses in the fiveyears, the net income realized by the company for each of the yearswas $2.31 billion, $2.71 billion, $1.17 billion, $4.75 billion and$3.75 billion respectively. The figure is a good indicator forprofitability. Therefore, investors may prefer to use the figures asthe accurate measure of the firm’s profitability. The figuresrepresent the net earnings or the net profit of the company. It isalso known as the firm’s bottom line or profitability realizedafter deducting all the expenses incurred by the company. The companycan use the figures in the income statement to evaluate itsprofitability and track its performance over several years.
MarketWatch.(2015). : Financials. Retrieved fromhttp://www.marketwatch.com/investing/stock/dow/financials