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Campbell Soup Co (NYSE:CPB)
Net Margin
9.89% (As of Apr. 2016)

Net margin is calculated as net income divided by its revenue. Campbell Soup Co's net income for the three months ended in Apr. 2016 was $185 Mil. Campbell Soup Co's revenue for the three months ended in Apr. 2016 was $1,870 Mil. Therefore, Campbell Soup Co's net margin for the quarter that ended in Apr. 2016 was 9.89%.

CPB' s Net Margin Range Over the Past 10 Years
Min: 5.69   Max: 14.57
Current: 8.61

5.69
14.57
CPB's Net Margin is ranked higher than
75% of the 1570 Companies
in the Global Packaged Foods industry.

( Industry Median: 3.30 vs. CPB: 8.61 )

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. 2015 is calculated as

Net Margin=Net Income (A: Jul. 2015 )/Revenue (A: Jul. 2015 )
=691/8082
=8.55 %

Campbell Soup Co's Net Margin for the quarter that ended in Apr. 2016 is calculated as

Net Margin=Net Income (Q: Apr. 2016 )/Revenue (Q: Apr. 2016 )
=185/1870
=9.89 %

* 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

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
netmargin 10.4311.5614.579.7011.0011.2710.795.699.898.55

Campbell Soup Co Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
netmargin 14.259.347.4011.009.949.422.488.8112.049.89
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