Switch to:
Emerson Electric Co. (NYSE:EMR)
Net Margin
8.24% (As of Dec. 2013)

Net margin is calculated as net income divided by its revenue. Emerson Electric Co.'s net income for the three months ended in Dec. 2013 was $462 Mil. Emerson Electric Co.'s revenue for the three months ended in Dec. 2013 was $5,606 Mil. Therefore, Emerson Electric Co.'s net margin for the quarter that ended in Dec. 2013 was 8.24%.

EMR' s 10-Year Net Margin Range
Min: 0.89   Max: 10.29
Current: 8.12

0.89
10.29
EMR's Net Marginis ranked higher than
83% of the 1893 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.16 vs. EMR: 8.12 )

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.

Emerson Electric Co.'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 )
=2004/24669
=8.12 %

Emerson Electric Co.'s Net Margin for the quarter that ended in Dec. 2013 is calculated as

Net Margin=Net Income (Q: Dec. 2013 )/Revenue (Q: Dec. 2013 )
=462/5606
=8.24 %

* 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.

Emerson Electric Co. Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
netmargin 8.058.229.359.659.728.5810.2910.248.068.12

Emerson Electric Co. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
netmargin 11.636.999.2111.884.218.189.413.0611.678.24
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide