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Goodyear Tire & Rubber Co (NAS:GT)
Net Margin
4.57% (As of Jun. 2014)

Net margin is calculated as net income divided by its revenue. Goodyear Tire & Rubber Co's net income for the three months ended in Jun. 2014 was $213 Mil. Goodyear Tire & Rubber Co's revenue for the three months ended in Jun. 2014 was $4,656 Mil. Therefore, Goodyear Tire & Rubber Co's net margin for the quarter that ended in Jun. 2014 was 4.57%.

GT' s 10-Year Net Margin Range
Min: -9   Max: 4.87
Current: 3.01

-9
4.87
GT's Net Marginis ranked higher than
62% of the 1244 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 4.52 vs. GT: 3.01 )

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. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=629/19540
=3.22 %

Goodyear Tire & Rubber Co's Net Margin for the quarter that ended in Jun. 2014 is calculated as

Net Margin=Net Income (Q: Jun. 2014 )/Revenue (Q: Jun. 2014 )
=213/4656
=4.57 %

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 0.631.26-1.763.06-0.40-2.30-1.151.511.013.22

Goodyear Tire & Rubber Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
netmargin -0.071.792.220.140.683.843.464.91-1.144.57
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