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Arthur J. Gallagher & Co (NYSE:AJG)
Net Margin
10.51% (As of Jun. 2016)

Net margin is calculated as net income divided by its revenue. Arthur J. Gallagher & Co's net income for the three months ended in Jun. 2016 was $150 Mil. Arthur J. Gallagher & Co's revenue for the three months ended in Jun. 2016 was $1,427 Mil. Therefore, Arthur J. Gallagher & Co's net margin for the quarter that ended in Jun. 2016 was 10.51%.

AJG' s Net Margin Range Over the Past 10 Years
Min: 4.7   Max: 9.34
Current: 7.11

4.7
9.34
AJG's Net Margin is ranked lower than
56% of the 672 Companies
in the Global Insurance Brokers industry.

( Industry Median: 12.65 vs. AJG: 7.11 )

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. 2015 is calculated as

Net Margin=Net Income (A: Dec. 2015 )/Revenue (A: Dec. 2015 )
=356.8/5392.4
=6.62 %

Arthur J. Gallagher & Co's Net Margin for the quarter that ended in Jun. 2016 is calculated as

Net Margin=Net Income (Q: Jun. 2016 )/Revenue (Q: Jun. 2016 )
=150/1427.1
=10.51 %

* 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
netmargin 8.748.554.707.449.346.757.748.456.566.62

Arthur J. Gallagher & Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
netmargin 5.399.247.274.141.7810.169.164.673.5810.51
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