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W R Grace & Co (NYSE:GRA)
Net Margin
7.31% (As of Mar. 2015)

Net margin is calculated as net income divided by its revenue. W R Grace & Co's net income for the three months ended in Mar. 2015 was $53 Mil. W R Grace & Co's revenue for the three months ended in Mar. 2015 was $721 Mil. Therefore, W R Grace & Co's net margin for the quarter that ended in Mar. 2015 was 7.31%.

GRA' s 10-Year Net Margin Range
Min: -17.8   Max: 17.65
Current: 8.66

-17.8
17.65
GRA's Net Marginis ranked higher than
78% of the 966 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.58 vs. GRA: 8.66 )

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.

W R Grace & Co'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 )
=276.3/3243
=8.52 %

W R Grace & Co's Net Margin for the quarter that ended in Mar. 2015 is calculated as

Net Margin=Net Income (Q: Mar. 2015 )/Revenue (Q: Mar. 2015 )
=52.7/720.6
=7.31 %

* 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.

W R Grace & Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
netmargin 2.620.652.853.662.527.748.391.278.378.52

W R Grace & Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
netmargin -20.778.3311.259.983.826.7316.258.701.937.31
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