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E*TRADE Financial Corp (NAS:ETFC)
Net Margin
28.60% (As of Sep. 2016)

Net margin is calculated as net income divided by its revenue. E*TRADE Financial Corp's net income for the three months ended in Sep. 2016 was $139 Mil. E*TRADE Financial Corp's revenue for the three months ended in Sep. 2016 was $486 Mil. Therefore, E*TRADE Financial Corp's net margin for the quarter that ended in Sep. 2016 was 28.60%.

ETFC' s Net Margin Range Over the Past 10 Years
Min: -468.76   Max: 27.58
Current: 27.58

-468.76
27.58
ETFC's Net Margin is ranked higher than
71% of the 690 Companies
in the Global Capital Markets industry.

( Industry Median: 9.43 vs. ETFC: 27.58 )

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.

E*TRADE Financial Corp's Net Margin for the fiscal year that ended in Dec. 2015 is calculated as

Net Margin=Net Income (A: Dec. 2015 )/Revenue (A: Dec. 2015 )
=268/1363
=19.66 %

E*TRADE Financial Corp's Net Margin for the quarter that ended in Sep. 2016 is calculated as

Net Margin=Net Income (Q: Sep. 2016 )/Revenue (Q: Sep. 2016 )
=139/486
=28.60 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

E*TRADE Financial Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
netmargin 26.26-468.76-26.58-58.54-1.377.69-6.575.3417.2319.66

E*TRADE Financial Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
netmargin 15.7520.929.459.0768.07-250.8220.6032.4228.0628.60
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