Switch to:
Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT)
Net Margin
8.50% (As of Dec. 2013)

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. 2013 was $128 Mil. Starwood Hotels & Resorts Worldwide Inc's revenue for the three months ended in Dec. 2013 was $1,506 Mil. Therefore, Starwood Hotels & Resorts Worldwide Inc's net margin for the quarter that ended in Dec. 2013 was 8.50%.

HOT' s 10-Year Net Margin Range
Min: 1.55   Max: 17.44
Current: 10.38

1.55
17.44
HOT's Net Marginis ranked higher than
81% of the 787 Companies
in the Global Lodging industry.

( Industry Median: 5.83 vs. HOT: 10.38 )

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. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=635/6115
=10.38 %

Starwood Hotels & Resorts Worldwide Inc's Net Margin for the quarter that ended in Dec. 2013 is calculated as

Net Margin=Net Income (Q: Dec. 2013 )/Revenue (Q: Dec. 2013 )
=128/1506
=8.50 %

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 7.367.0617.448.815.721.559.418.698.8910.38

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
netmargin 11.8810.917.467.5411.689.2613.848.7710.418.50
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)
Free 7-day Trial
FEEDBACK
Hide