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Fortune Brands Home & Security Inc (NYSE:FBHS)
Net Margin
6.84% (As of Jun. 2015)

Net margin is calculated as net income divided by its revenue. Fortune Brands Home & Security Inc's net income for the three months ended in Jun. 2015 was $80 Mil. Fortune Brands Home & Security Inc's revenue for the three months ended in Jun. 2015 was $1,165 Mil. Therefore, Fortune Brands Home & Security Inc's net margin for the quarter that ended in Jun. 2015 was 6.84%.

FBHS' s 10-Year Net Margin Range
Min: -1.39   Max: 6.2
Current: 3.46

-1.39
6.2
FBHS's Net Marginis ranked higher than
51% of the 714 Companies
in the Global Home Furnishings & Fixtures industry.

( Industry Median: 3.35 vs. FBHS: 3.46 )

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.

Fortune Brands Home & Security Inc's Net Margin for the fiscal year that ended in Dec. 2014 is calculated as

Net Margin=Net Income (A: Dec. 2014 )/Revenue (A: Dec. 2014 )
=158.1/4013.6
=3.94 %

Fortune Brands Home & Security Inc's Net Margin for the quarter that ended in Jun. 2015 is calculated as

Net Margin=Net Income (Q: Jun. 2015 )/Revenue (Q: Jun. 2015 )
=79.7/1165.1
=6.84 %

* 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.

Fortune Brands Home & Security Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14
netmargin 0.000.000.000.00-1.391.97-1.073.316.203.94

Fortune Brands Home & Security Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
netmargin 4.196.156.147.504.599.08-1.924.804.216.84
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