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E*Trade Financial Corp (NAS:ETFC)
Net Margin
20.92% (As of Sep. 2014)

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. 2014 was $86 Mil. E*Trade Financial Corp's revenue for the three months ended in Sep. 2014 was $411 Mil. Therefore, E*Trade Financial Corp's net margin for the quarter that ended in Sep. 2014 was 20.92%.

ETFC' s 10-Year Net Margin Range
Min: -468.76   Max: 26.26
Current: 16.7

-468.76
26.26
ETFC's Net Marginis ranked higher than
69% of the 439 Companies
in the Global Capital Markets industry.

( Industry Median: 16.23 vs. ETFC: 16.70 )

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. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=86.012/1723.697
=4.99 %

E*Trade Financial Corp's Net Margin for the quarter that ended in Sep. 2014 is calculated as

Net Margin=Net Income (Q: Sep. 2014 )/Revenue (Q: Sep. 2014 )
=86/411
=20.92 %

* 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.

E*Trade Financial Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 23.5924.1226.26-468.76-26.58-58.54-1.378.43-5.934.99

E*Trade Financial Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
netmargin 8.73-5.84-39.798.33-12.2712.1110.8920.4215.7520.92
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