Switch to:
Goodyear Tire & Rubber Co (NAS:GT)
Net Margin
5.57% (As of Mar. 2015)

Net margin is calculated as net income divided by its revenue. Goodyear Tire & Rubber Co's net income for the three months ended in Mar. 2015 was $224 Mil. Goodyear Tire & Rubber Co's revenue for the three months ended in Mar. 2015 was $4,024 Mil. Therefore, Goodyear Tire & Rubber Co's net margin for the quarter that ended in Mar. 2015 was 5.57%.

GT' s 10-Year Net Margin Range
Min: -9   Max: 13.52
Current: 15.41

-9
13.52
GT's Net Marginis ranked higher than
93% of the 1176 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 3.60 vs. GT: 15.41 )

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.

Goodyear Tire & Rubber 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 )
=2452/18138
=13.52 %

Goodyear Tire & Rubber 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 )
=224/4024
=5.57 %

* 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.

Goodyear Tire & Rubber Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
netmargin 1.26-1.763.06-0.40-2.30-1.151.511.013.2213.52

Goodyear Tire & Rubber Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
netmargin 0.140.683.843.464.91-1.144.573.4648.885.57
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK