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Hewlett-Packard Co (NYSE:HPQ)
Net Margin
4.66% (As of Apr. 2014)

Net margin is calculated as net income divided by its revenue. Hewlett-Packard Co's net income for the three months ended in Apr. 2014 was $1,273 Mil. Hewlett-Packard Co's revenue for the three months ended in Apr. 2014 was $27,309 Mil. Therefore, Hewlett-Packard Co's net margin for the quarter that ended in Apr. 2014 was 4.66%.

HPQ' s 10-Year Net Margin Range
Min: -10.51   Max: 8.24
Current: 4.55

-10.51
8.24
HPQ's Net Marginis ranked higher than
70% of the 2535 Companies
in the Global Computer Systems industry.

( Industry Median: 2.99 vs. HPQ: 4.55 )

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.

Hewlett-Packard Co's Net Margin for the fiscal year that ended in Oct. 2013 is calculated as

Net Margin=Net Income (A: Oct. 2013 )/Revenue (A: Oct. 2013 )
=5113/112298
=4.55 %

Hewlett-Packard Co's Net Margin for the quarter that ended in Apr. 2014 is calculated as

Net Margin=Net Income (Q: Apr. 2014 )/Revenue (Q: Apr. 2014 )
=1273/27309
=4.66 %

* 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.

Hewlett-Packard Co Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
netmargin 4.382.776.766.977.046.696.955.56-10.514.55

Hewlett-Packard Co Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
netmargin 5.19-29.85-22.884.343.905.114.855.064.663.57
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