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Air Products & Chemicals Inc (NYSE:APD)
Net Margin
3.88% (As of Sep. 2014)

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. 2014 was $104 Mil. Air Products & Chemicals Inc's revenue for the three months ended in Sep. 2014 was $2,677 Mil. Therefore, Air Products & Chemicals Inc's net margin for the quarter that ended in Sep. 2014 was 3.88%.

APD' s 10-Year Net Margin Range
Min: 2.27   Max: 12.14
Current: 9.5

2.27
12.14
APD's Net Marginis ranked higher than
88% of the 1120 Companies
in the Global Chemicals industry.

( Industry Median: 3.95 vs. APD: 9.50 )

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. 2014 is calculated as

Net Margin=Net Income (A: Sep. 2014 )/Revenue (A: Sep. 2014 )
=991.7/10439
=9.50 %

Air Products & Chemicals Inc's Net Margin for the quarter that ended in Sep. 2014 is calculated as

Net Margin=Net Income (Q: Sep. 2014 )/Revenue (Q: Sep. 2014 )
=104/2677
=3.88 %

* 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.

Air Products & Chemicals Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
netmargin 8.748.1710.328.737.6511.4012.1412.149.779.50

Air Products & Chemicals Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
netmargin 20.705.3210.8611.6911.325.3011.4010.9811.923.88
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