Switch to:
Babcock & Wilcox Co (NYSE:BWC)
Net Margin
3.85% (As of Jun. 2014)

Net margin is calculated as net income divided by its revenue. Babcock & Wilcox Co's net income for the three months ended in Jun. 2014 was $26 Mil. Babcock & Wilcox Co's revenue for the three months ended in Jun. 2014 was $686 Mil. Therefore, Babcock & Wilcox Co's net margin for the quarter that ended in Jun. 2014 was 3.85%.

BWC' s 10-Year Net Margin Range
Min: 5.18   Max: 10.59
Current: 10.59

5.18
10.59
BWC's Net Marginis ranked higher than
88% of the 1955 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.34 vs. BWC: 10.59 )

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.

Babcock & Wilcox Co's Net Margin for the fiscal year that ended in Dec. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=346.078/3269.208
=10.59 %

Babcock & Wilcox Co's Net Margin for the quarter that ended in Jun. 2014 is calculated as

Net Margin=Net Income (Q: Jun. 2014 )/Revenue (Q: Jun. 2014 )
=26.437/686.006
=3.85 %

* 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.

Babcock & Wilcox Co Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 0.000.000.000.009.535.185.705.756.9210.59

Babcock & Wilcox Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
netmargin 6.107.515.028.835.868.227.8020.636.803.85
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK