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Cal-Maine Foods, Inc. (NAS:CALM)
Net Margin
10.83% (As of Feb. 2014)

Net margin is calculated as net income divided by its revenue. Cal-Maine Foods, Inc.'s net income for the three months ended in Feb. 2014 was $43 Mil. Cal-Maine Foods, Inc.'s revenue for the three months ended in Feb. 2014 was $396 Mil. Therefore, Cal-Maine Foods, Inc.'s net margin for the quarter that ended in Feb. 2014 was 10.83%.

CALM' s 10-Year Net Margin Range
Min: -6.05   Max: 16.58
Current: 3.91

-6.05
16.58
CALM's Net Marginis ranked higher than
71% of the 1416 Companies
in the Global Packaged Foods industry.

( Industry Median: 3.99 vs. CALM: 3.91 )

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.

Cal-Maine Foods, Inc.'s Net Margin for the fiscal year that ended in May. 2013 is calculated as

Net Margin=Net Income (A: May. 2013 )/Revenue (A: May. 2013 )
=50.423/1288.104
=3.91 %

Cal-Maine Foods, Inc.'s Net Margin for the quarter that ended in Feb. 2014 is calculated as

Net Margin=Net Income (Q: Feb. 2014 )/Revenue (Q: Feb. 2014 )
=42.853/395.522
=10.83 %

* 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.

Cal-Maine Foods, Inc. Annual Data

May04May05May06May07May08May09May10May11May12May13
netmargin 11.61-2.76-0.216.1316.588.567.456.468.063.91

Cal-Maine Foods, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
netmargin 8.018.6013.543.454.358.48-1.182.747.3710.83
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