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Cal-Maine Foods Inc (NAS:CALM)
Net Margin
14.27% (As of Feb. 2016)

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. 2016 was $64 Mil. Cal-Maine Foods Inc's revenue for the three months ended in Feb. 2016 was $450 Mil. Therefore, Cal-Maine Foods Inc's net margin for the quarter that ended in Feb. 2016 was 14.27%.

CALM' s Net Margin Range Over the Past 10 Years
Min: -0.21   Max: 16.58
Current: 18.05

-0.21
16.58
CALM's Net Margin is ranked higher than
91% of the 1579 Companies
in the Global Packaged Foods industry.

( Industry Median: 3.18 vs. CALM: 18.05 )

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. 2015 is calculated as

Net Margin=Net Income (A: May. 2015 )/Revenue (A: May. 2015 )
=161.254/1576.128
=10.23 %

Cal-Maine Foods Inc's Net Margin for the quarter that ended in Feb. 2016 is calculated as

Net Margin=Net Income (Q: Feb. 2016 )/Revenue (Q: Feb. 2016 )
=64.164/449.76
=14.27 %

* 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

May06May07May08May09May10May11May12May13May14May15
netmargin -0.216.1316.588.567.456.468.063.917.5810.23

Cal-Maine Foods Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
netmargin 7.3710.838.487.759.6711.6311.4423.4520.0114.27
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