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Bank of Montreal (NYSE:BMO)
Net Margin
19.07% (As of Apr. 2016)

Net margin is calculated as net income divided by its revenue. Bank of Montreal's net income for the three months ended in Apr. 2016 was $759 Mil. Bank of Montreal's revenue for the three months ended in Apr. 2016 was $3,980 Mil. Therefore, Bank of Montreal's net margin for the quarter that ended in Apr. 2016 was 19.07%.

BMO' s Net Margin Range Over the Past 10 Years
Min: 16.15   Max: 26.68
Current: 22.14

16.15
26.68
BMO's Net Margin is ranked higher than
50% of the 1632 Companies
in the Global Banks - Global industry.

( Industry Median: 22.26 vs. BMO: 22.14 )

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.

Bank of Montreal's Net Margin for the fiscal year that ended in Oct. 2015 is calculated as

Net Margin=Net Income (A: Oct. 2015 )/Revenue (A: Oct. 2015 )
=3343.02325581/14832.4663403
=22.54 %

Bank of Montreal's Net Margin for the quarter that ended in Apr. 2016 is calculated as

Net Margin=Net Income (Q: Apr. 2016 )/Revenue (Q: Apr. 2016 )
=759.088781401/3979.55999376
=19.07 %

* 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.

Bank of Montreal Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
netmargin 26.6822.8019.3816.1523.0121.8125.6324.5423.4722.54

Bank of Montreal Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
netmargin 23.4024.3123.4422.7819.5121.9424.5524.2120.8919.07
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