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Cisco Systems Inc (NAS:CSCO)
Net Margin
18.89% (As of Apr. 2014)

Net margin is calculated as net income divided by its revenue. Cisco Systems Inc's net income for the three months ended in Apr. 2014 was $2,181 Mil. Cisco Systems Inc's revenue for the three months ended in Apr. 2014 was $11,545 Mil. Therefore, Cisco Systems Inc's net margin for the quarter that ended in Apr. 2014 was 18.89%.

CSCO' s 10-Year Net Margin Range
Min: -4.55   Max: 23.15
Current: 20.54

-4.55
23.15
CSCO's Net Marginis ranked higher than
96% of the 622 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.61 vs. CSCO: 20.54 )

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.

Cisco Systems Inc'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 )
=9983/48607
=20.54 %

Cisco Systems Inc's Net Margin for the quarter that ended in Apr. 2014 is calculated as

Net Margin=Net Income (Q: Apr. 2014 )/Revenue (Q: Apr. 2014 )
=2181/11545
=18.89 %

* 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.

Cisco Systems Inc Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
netmargin 23.1519.5921.0020.3616.9819.4015.0217.4620.5416.66

Cisco Systems Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
netmargin 18.6816.4017.6225.9820.2818.2816.5212.8118.8918.18
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