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Brown-Forman Corp (NYSE:BF.B)
Net Margin
19.30% (As of Apr. 2014)

Net margin is calculated as net income divided by its revenue. Brown-Forman Corp's net income for the three months ended in Apr. 2014 was $133 Mil. Brown-Forman Corp's revenue for the three months ended in Apr. 2014 was $689 Mil. Therefore, Brown-Forman Corp's net margin for the quarter that ended in Apr. 2014 was 19.30%.

BF.B' s 10-Year Net Margin Range
Min: 10.36   Max: 22.12
Current: 22.03

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: 8.19 vs. BF.B: 22.03 )

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 Corp's Net Margin for the fiscal year that ended in Apr. 2014 is calculated as

Net Margin=Net Income (A: Apr. 2014 )/Revenue (A: Apr. 2014 )
=659/2991
=22.03 %

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

Net Margin=Net Income (Q: Apr. 2014 )/Revenue (Q: Apr. 2014 )
=133/689
=19.30 %

* 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 Corp Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
netmargin 17.3216.4617.5417.0417.5318.1922.1218.8420.7422.03

Brown-Forman Corp Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
netmargin 18.9717.3122.0722.2721.0217.1220.8524.7322.6319.30
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