Switch to:
Air Products & Chemicals Inc (NYSE:APD)
Net Margin
16.00% (As of Sep. 2016)

Net margin is calculated as net income divided by its revenue. Air Products & Chemicals Inc's net income for the three months ended in Sep. 2016 was $394 Mil. Air Products & Chemicals Inc's revenue for the three months ended in Sep. 2016 was $2,463 Mil. Therefore, Air Products & Chemicals Inc's net margin for the quarter that ended in Sep. 2016 was 16.00%.

APD' s Net Margin Range Over the Past 10 Years
Min: 6.63   Max: 12.91
Current: 6.63

6.63
12.91
APD's Net Margin is ranked higher than
63% of the 1086 Companies
in the Global Chemicals industry.

( Industry Median: 4.56 vs. APD: 6.63 )

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.

Air Products & Chemicals Inc's Net Margin for the fiscal year that ended in Sep. 2016 is calculated as

Net Margin=Net Income (A: Sep. 2016 )/Revenue (A: Sep. 2016 )
=631.1/9524.4
=6.63 %

Air Products & Chemicals Inc's Net Margin for the quarter that ended in Sep. 2016 is calculated as

Net Margin=Net Income (Q: Sep. 2016 )/Revenue (Q: Sep. 2016 )
=394/2463
=16.00 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Air Products & Chemicals Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
netmargin 10.328.737.6511.4012.6512.149.779.5012.916.63

Air Products & Chemicals Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
netmargin 11.923.8812.6812.0112.9114.0615.43-20.8414.2516.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK