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W W Grainger Inc (NYSE:GWW)
Net Margin
8.99% (As of Sep. 2014)

Net margin is calculated as net income divided by its revenue. W W Grainger Inc's net income for the three months ended in Sep. 2014 was $230 Mil. W W Grainger Inc's revenue for the three months ended in Sep. 2014 was $2,562 Mil. Therefore, W W Grainger Inc's net margin for the quarter that ended in Sep. 2014 was 8.99%.

GWW' s 10-Year Net Margin Range
Min: 3.67   Max: 8.45
Current: 8.24

3.67
8.45
GWW's Net Marginis ranked higher than
91% of the 227 Companies
in the Global Industrial Distribution industry.

( Industry Median: 2.43 vs. GWW: 8.24 )

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 W Grainger Inc'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 )
=797.036/9437.758
=8.45 %

W W Grainger Inc'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 )
=230.322/2562.263
=8.99 %

* 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 W Grainger Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 5.686.276.526.556.946.927.118.157.718.45

W W Grainger Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
netmargin 8.486.817.029.299.148.796.599.088.228.99
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