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Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT)
Net Margin
15.67% (As of Dec. 2014)

Net margin is calculated as net income divided by its revenue. Starwood Hotels & Resorts Worldwide Inc's net income for the three months ended in Dec. 2014 was $234 Mil. Starwood Hotels & Resorts Worldwide Inc's revenue for the three months ended in Dec. 2014 was $1,493 Mil. Therefore, Starwood Hotels & Resorts Worldwide Inc's net margin for the quarter that ended in Dec. 2014 was 15.67%.

HOT' s 10-Year Net Margin Range
Min: 1.55   Max: 17.44
Current: 10.58

1.55
17.44
HOT's Net Marginis ranked higher than
83% of the 1194 Companies
in the Global Lodging industry.

( Industry Median: 4.67 vs. HOT: 10.58 )

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.

Starwood Hotels & Resorts Worldwide Inc'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 )
=633/5983
=10.58 %

Starwood Hotels & Resorts Worldwide Inc's Net Margin for the quarter that ended in Dec. 2014 is calculated as

Net Margin=Net Income (Q: Dec. 2014 )/Revenue (Q: Dec. 2014 )
=234/1493
=15.67 %

* 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.

Starwood Hotels & Resorts Worldwide Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
netmargin 7.0617.448.815.721.559.418.698.8910.3810.58

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
netmargin 11.689.2613.848.7710.418.509.409.947.3015.67
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