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Arthur J Gallagher & Co (NYSE:AJG)
Net Margin
5.39% (As of Mar. 2014)

Net margin is calculated as net income divided by its revenue. Arthur J Gallagher & Co's net income for the three months ended in Mar. 2014 was $49 Mil. Arthur J Gallagher & Co's revenue for the three months ended in Mar. 2014 was $915 Mil. Therefore, Arthur J Gallagher & Co's net margin for the quarter that ended in Mar. 2014 was 5.39%.

AJG' s 10-Year Net Margin Range
Min: 2.16   Max: 14.11
Current: 8.45

2.16
14.11
AJG's Net Marginis ranked higher than
59% of the 364 Companies
in the Global Insurance Brokers industry.

( Industry Median: 15.57 vs. AJG: 8.45 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Arthur J Gallagher & Co's Net Margin for the fiscal year that ended in Dec. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=268.6/3179.6
=8.45 %

Arthur J Gallagher & Co's Net Margin for the quarter that ended in Mar. 2014 is calculated as

Net Margin=Net Income (Q: Mar. 2014 )/Revenue (Q: Mar. 2014 )
=49.3/915
=5.39 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s 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.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Arthur J Gallagher & Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 13.122.168.748.554.707.449.346.757.748.45

Arthur J Gallagher & Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
netmargin 7.005.1411.039.494.986.0111.998.936.745.39
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