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Campbell Soup Co (NYSE:CPB)
Net Margin
14.25% (As of Jan. 2014)

Net margin is calculated as net income divided by its revenue. Campbell Soup Co's net income for the three months ended in Jan. 2014 was $325 Mil. Campbell Soup Co's revenue for the three months ended in Jan. 2014 was $2,281 Mil. Therefore, Campbell Soup Co's net margin for the quarter that ended in Jan. 2014 was 14.25%.

CPB' s 10-Year Net Margin Range
Min: 5.69   Max: 14.57
Current: 5.69

5.69
14.57
CPB's Net Marginis ranked higher than
78% of the 1416 Companies
in the Global Packaged Foods industry.

( Industry Median: 3.99 vs. CPB: 5.69 )

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.

Campbell Soup Co's Net Margin for the fiscal year that ended in Jul. 2013 is calculated as

Net Margin=Net Income (A: Jul. 2013 )/Revenue (A: Jul. 2013 )
=458/8052
=5.69 %

Campbell Soup Co's Net Margin for the quarter that ended in Jan. 2014 is calculated as

Net Margin=Net Income (Q: Jan. 2014 )/Revenue (Q: Jan. 2014 )
=325/2281
=14.25 %

* 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.

Campbell Soup Co Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
netmargin 9.1010.0010.4311.5614.579.7011.0011.2710.795.69

Campbell Soup Co Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
netmargin 12.269.719.7211.7511.118.798.64-12.267.9414.25
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