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A O Smith Corp (NYSE:AOS)
Net Margin
9.62% (As of Jun. 2014)

Net margin is calculated as net income divided by its revenue. A O Smith Corp's net income for the three months ended in Jun. 2014 was $57 Mil. A O Smith Corp's revenue for the three months ended in Jun. 2014 was $595 Mil. Therefore, A O Smith Corp's net margin for the quarter that ended in Jun. 2014 was 9.62%.

AOS' s 10-Year Net Margin Range
Min: 1.26   Max: 22.68
Current: 8.59

1.26
22.68
AOS's Net Marginis ranked higher than
85% of the 1979 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.63 vs. AOS: 8.59 )

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.

A O Smith Corp'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 )
=169.7/2153.8
=7.88 %

A O Smith Corp's Net Margin for the quarter that ended in Jun. 2014 is calculated as

Net Margin=Net Income (Q: Jun. 2014 )/Revenue (Q: Jun. 2014 )
=57.3/595.4
=9.62 %

* 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.

A O Smith Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 2.142.753.543.813.555.917.5017.878.187.88

A O Smith Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
netmargin 10.147.238.017.507.657.678.627.598.469.62
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