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Check Point Software Technologies Ltd (NAS:CHKP)
Net Margin
39.22% (As of Jun. 2016)

Net margin is calculated as net income divided by its revenue. Check Point Software Technologies Ltd's net income for the three months ended in Jun. 2016 was $166 Mil. Check Point Software Technologies Ltd's revenue for the three months ended in Jun. 2016 was $423 Mil. Therefore, Check Point Software Technologies Ltd's net margin for the quarter that ended in Jun. 2016 was 39.22%.

CHKP' s Net Margin Range Over the Past 10 Years
Min: 38.46   Max: 48.34
Current: 41.18

38.46
48.34
CHKP's Net Margin is ranked higher than
98% of the 1810 Companies
in the Global Software - Application industry.

( Industry Median: 3.19 vs. CHKP: 41.18 )

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.

Check Point Software Technologies Ltd's Net Margin for the fiscal year that ended in Dec. 2015 is calculated as

Net Margin=Net Income (A: Dec. 2015 )/Revenue (A: Dec. 2015 )
=685.866/1629.838
=42.08 %

Check Point Software Technologies Ltd's Net Margin for the quarter that ended in Jun. 2016 is calculated as

Net Margin=Net Income (Q: Jun. 2016 )/Revenue (Q: Jun. 2016 )
=165.819/422.749
=39.22 %

* 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.

Check Point Software Technologies Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
netmargin 48.3438.4640.0738.6841.2543.6246.1846.8344.0942.08

Check Point Software Technologies Ltd Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
netmargin 44.7344.0343.4844.1743.1841.1441.5442.4841.4139.22
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