Some European companies do not report cost of goods sold as a separate expense item.What affect does this have on financial statement analysis?

Question

Quizplus · Accepted Answer

Cost of goods sold is necessary to calculate gross profit, and without knowing gross profit, any measure that relies on it (such as gross profit margin) cannot be accurately calculated. Other parts of the financial statements, such as total expenses and net income, may still be calculated even if cost of goods sold is not reported separately.

Some European Companies Do Not Report Cost of Goods Sold