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BHP Billiton Ltd (NYSE:BHP)
Net Margin
23.88% (As of Dec. 2013)

Net margin is calculated as net income divided by its revenue. BHP Billiton Ltd's net income for the six months ended in Dec. 2013 was $8,107 Mil. BHP Billiton Ltd's revenue for the six months ended in Dec. 2013 was $33,948 Mil. Therefore, BHP Billiton Ltd's net margin for the quarter that ended in Dec. 2013 was 23.88%.

BHP' s 10-Year Net Margin Range
Min: -12.02   Max: 32.96
Current: 16.49

-12.02
32.96
BHP's Net Marginis ranked higher than
94% of the 1313 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: -3.18 vs. BHP: 16.49 )

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.

BHP Billiton Ltd's Net Margin for the fiscal year that ended in Jun. 2013 is calculated as

Net Margin=Net Income (A: Jun. 2013 )/Revenue (A: Jun. 2013 )
=10876/65968
=16.49 %

BHP Billiton Ltd's Net Margin for the quarter that ended in Dec. 2013 is calculated as

Net Margin=Net Income (Q: Dec. 2013 )/Revenue (Q: Dec. 2013 )
=8107/33948
=23.88 %

* 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.

BHP Billiton Ltd Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
netmargin 14.8723.9425.9127.9025.8811.7024.3432.9621.3516.49

BHP Billiton Ltd Semi-Annual Data

Jun09Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13
netmargin 15.9624.6524.0630.5535.1926.8015.4613.8219.0023.88
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