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Net margin is calculated as net income divided by its revenue. Amazon.com Inc's net income for the three months ended in Sep. 2016 was $252 Mil. Amazon.com Inc's revenue for the three months ended in Sep. 2016 was $32,714 Mil. Therefore, Amazon.com Inc's net margin for the quarter that ended in Sep. 2016 was 0.77%.
Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.
Amazon.com Inc's Net Margin for the fiscal year that ended in Dec. 2015 is calculated as
Amazon.com Inc's Net Margin for the quarter that ended in Sep. 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.
Amazon.com Inc Annual Data
Amazon.com Inc Quarterly Data