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Brown-Forman Corporation (NYSE:BF.B)
Net Margin
22.63% (As of Jan. 2014)

Net margin is calculated as net income divided by its revenue. Brown-Forman Corporation's net income for the three months ended in Jan. 2014 was $177 Mil. Brown-Forman Corporation's revenue for the three months ended in Jan. 2014 was $782 Mil. Therefore, Brown-Forman Corporation's net margin for the quarter that ended in Jan. 2014 was 22.63%.

BF.B' s 10-Year Net Margin Range
Min: 10.36   Max: 22.12
Current: 20.74

10.36
22.12
BF.B's Net Marginis ranked higher than
93% of the 232 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 9.07 vs. BF.B: 20.74 )

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.

Brown-Forman Corporation's Net Margin for the fiscal year that ended in Apr. 2013 is calculated as

Net Margin=Net Income (A: Apr. 2013 )/Revenue (A: Apr. 2013 )
=591/2849
=20.74 %

Brown-Forman Corporation's Net Margin for the quarter that ended in Jan. 2014 is calculated as

Net Margin=Net Income (Q: Jan. 2014 )/Revenue (Q: Jan. 2014 )
=177/782
=22.63 %

* 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.

Brown-Forman Corporation Annual Data

Apr04Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13
netmargin 15.3417.3216.4617.5417.0417.5318.1922.1218.8420.74

Brown-Forman Corporation Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
netmargin 15.5518.9717.3122.0722.2721.0217.1220.8524.7322.63
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