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Bank of Montreal (NYSE:BMO)
Net Margin
26.28% (As of Apr. 2014)

Net margin is calculated as net income divided by its revenue. Bank of Montreal's net income for the three months ended in Apr. 2014 was $975 Mil. Bank of Montreal's revenue for the three months ended in Apr. 2014 was $3,711 Mil. Therefore, Bank of Montreal's net margin for the quarter that ended in Apr. 2014 was 26.28%.

BMO' s 10-Year Net Margin Range
Min: 16.15   Max: 26.68
Current: 25.72

16.15
26.68
BMO's Net Marginis ranked higher than
82% of the 1613 Companies
in the Global Banks - Regional - Canada industry.

( Industry Median: 21.45 vs. BMO: 25.72 )

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. 2013 is calculated as

Net Margin=Net Income (A: Oct. 2013 )/Revenue (A: Oct. 2013 )
=3987.607245/15503.336511
=25.72 %

Bank of Montreal'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 )
=975.20661157/3710.74380165
=26.28 %

* 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.

Bank of Montreal Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
netmargin 24.6624.4026.6822.8019.3816.1523.0121.8125.5125.72

Bank of Montreal Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
netmargin 26.4825.5124.5225.4825.2524.2527.6825.6425.4226.28
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