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Amdocs Ltd (NAS:DOX)
Net Margin
12.17% (As of Jun. 2014)

Net margin is calculated as net income divided by its revenue. Amdocs Ltd's net income for the three months ended in Jun. 2014 was $110 Mil. Amdocs Ltd's revenue for the three months ended in Jun. 2014 was $902 Mil. Therefore, Amdocs Ltd's net margin for the quarter that ended in Jun. 2014 was 12.17%.

DOX' s 10-Year Net Margin Range
Min: -0.31   Max: 15.71
Current: 12.33

-0.31
15.71
DOX's Net Marginis ranked higher than
87% of the 1672 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.67 vs. DOX: 12.33 )

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.

Amdocs Ltd's Net Margin for the fiscal year that ended in Sep. 2013 is calculated as

Net Margin=Net Income (A: Sep. 2013 )/Revenue (A: Sep. 2013 )
=412.439/3345.854
=12.33 %

Amdocs Ltd's Net Margin for the quarter that ended in Jun. 2014 is calculated as

Net Margin=Net Income (Q: Jun. 2014 )/Revenue (Q: Jun. 2014 )
=109.827/902.477
=12.17 %

* 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.

Amdocs Ltd Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
netmargin 13.2414.1612.8512.8711.9811.3911.5210.9112.0512.33

Amdocs Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
netmargin 12.5912.2111.9211.9812.6014.2110.5211.7412.3012.17
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