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Net margin is calculated as net income divided by its revenue. AbbVie Inc's net income for the three months ended in Mar. 2016 was $1,354 Mil. AbbVie Inc's revenue for the three months ended in Mar. 2016 was $5,958 Mil. Therefore, AbbVie Inc's net margin for the quarter that ended in Mar. 2016 was 22.73%.
Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.
AbbVie Inc's Net Margin for the fiscal year that ended in Dec. 2014 is calculated as
AbbVie Inc's Net Margin for the quarter that ended in Mar. 2016 is calculated as
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a companys profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
AbbVie Inc Annual Data
AbbVie Inc Quarterly Data