Formula
Net Margin = (
Revenue -
Cost of Goods Sold -
Selling, General, & Admin. Expense -
Research & Development -
Depreciation, Depletion and Amortization -
Interest Expense -
Non-Recurring Items -
Tax Expense) /
RevenueFifth Street Finance Corporation netmargin Calculation
* All numbers are in millions except for per share dataFifth Street Finance Corporation Annual Data
| Sep08 | Sep09 | Sep10 | Sep11 | Sep12 |
|---|
| netmargin |  |  |  |  |  |
|---|
Fifth Street Finance Corporation Quarterly Data
| Dec10 | Mar11 | Jun11 | Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 |
|---|
| netmargin |  |  |  |  |  |  |  |  |  |  |
|---|
Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a companys 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
Revenue,
Cost of Goods Sold,
Selling, General, & Admin. Expense,
Research & Development,
Depreciation, Depletion and Amortization,
Interest Expense,
Non-Recurring Items,
Tax Expense,
Net Income* All numbers are in millions except for per share dataFifth Street Finance Corporation Annual Data
| Sep08 | Sep09 | Sep10 | Sep11 | Sep12 |
|---|
| netmargin |  |  |  |  |  |
|---|
Fifth Street Finance Corporation Quarterly Data
| Dec10 | Mar11 | Jun11 | Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 |
|---|
| netmargin |  |  |  |  |  |  |  |  |  |  |
|---|