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Avago Technologies Ltd (NAS:AVGO)
Net Margin
-12.92% (As of Jul. 2014)

Net margin is calculated as net income divided by its revenue. Avago Technologies Ltd's net income for the three months ended in Jul. 2014 was $-164 Mil. Avago Technologies Ltd's revenue for the three months ended in Jul. 2014 was $1,269 Mil. Therefore, Avago Technologies Ltd's net margin for the quarter that ended in Jul. 2014 was -12.92%.

AVGO' s 10-Year Net Margin Range
Min: -10.41   Max: 23.82
Current: 8.78

-10.41
23.82
AVGO's Net Marginis ranked higher than
82% of the 1046 Companies
in the Global Semiconductors industry.

( Industry Median: 2.77 vs. AVGO: 8.78 )

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.

Avago Technologies Ltd's Net Margin for the fiscal year that ended in Oct. 2013 is calculated as

Net Margin=Net Income (A: Oct. 2013 )/Revenue (A: Oct. 2013 )
=552/2520
=21.90 %

Avago Technologies Ltd's Net Margin for the quarter that ended in Jul. 2014 is calculated as

Net Margin=Net Income (Q: Jul. 2014 )/Revenue (Q: Jul. 2014 )
=-164/1269
=-12.92 %

* 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.

Avago Technologies Ltd Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13
netmargin 0.000.000.00-10.414.89-2.9619.8323.6323.8221.90

Avago Technologies Ltd Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
netmargin 23.2223.9325.7321.7020.1122.0523.3118.9022.54-12.92
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