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W R Grace & Co (NYSE:GRA)
Net Margin
8.70% (As of Sep. 2014)

Net margin is calculated as net income divided by its revenue. W R Grace & Co's net income for the three months ended in Sep. 2014 was $75 Mil. W R Grace & Co's revenue for the three months ended in Sep. 2014 was $856 Mil. Therefore, W R Grace & Co's net margin for the quarter that ended in Sep. 2014 was 8.70%.

GRA' s 10-Year Net Margin Range
Min: -17.8   Max: 17.65
Current: 9.03

-17.8
17.65
GRA's Net Marginis ranked higher than
87% of the 1120 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.99 vs. GRA: 9.03 )

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. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=256.1/3060.7
=8.37 %

W R Grace & Co'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 )
=74.5/856.4
=8.70 %

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin -17.802.620.652.853.662.527.748.391.278.37

W R Grace & Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
netmargin 8.389.72-20.778.3311.259.983.826.7316.258.70
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