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Fortune Brands Home & Security Inc (NYSE:FBHS)
Net Margin
5.83% (As of Dec. 2013)

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 Dec. 2013 was $64 Mil. Fortune Brands Home & Security Inc's revenue for the three months ended in Dec. 2013 was $1,102 Mil. Therefore, Fortune Brands Home & Security Inc's net margin for the quarter that ended in Dec. 2013 was 5.83%.

FBHS' s 10-Year Net Margin Range
Min: -1.39   Max: 5.53
Current: 5.53

-1.39
5.53
FBHS's Net Marginis ranked higher than
72% of the 726 Companies
in the Global Home Furnishings & Fixtures industry.

( Industry Median: 4.38 vs. FBHS: 5.53 )

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. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=229.7/4157.4
=5.53 %

Fortune Brands Home & Security Inc'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 )
=64.2/1101.9
=5.83 %

* 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

Dec09Dec10Dec11Dec12Dec13
netmargin 0.000.000.000.000.00-1.391.97-1.073.315.53

Fortune Brands Home & Security Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
netmargin 0.26-8.101.565.114.401.944.196.155.715.83
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