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Brown-Forman Corp (NYSE:BF.B)
Net Margin
21.28% (As of Jul. 2014)

Net margin is calculated as net income divided by its revenue. Brown-Forman Corp's net income for the three months ended in Jul. 2014 was $150 Mil. Brown-Forman Corp's revenue for the three months ended in Jul. 2014 was $705 Mil. Therefore, Brown-Forman Corp's net margin for the quarter that ended in Jul. 2014 was 21.28%.

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 238 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 8.16 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 Jul. 2014 is calculated as

Net Margin=Net Income (Q: Jul. 2014 )/Revenue (Q: Jul. 2014 )
=150/705
=21.28 %

* 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 13.3216.1917.5417.0417.5318.1922.1214.1920.7422.03

Brown-Forman Corp Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
netmargin 6.9816.8017.0621.1017.1320.8524.7322.6319.3021.28
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