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The Hershey Co (NYSE:HSY)
Net Margin
7.89% (As of Sep. 2015)

Net margin is calculated as net income divided by its revenue. The Hershey Co's net income for the three months ended in Sep. 2015 was $155 Mil. The Hershey Co's revenue for the three months ended in Sep. 2015 was $1,961 Mil. Therefore, The Hershey Co's net margin for the quarter that ended in Sep. 2015 was 7.89%.

HSY' s Net Margin Range Over the Past 10 Years
Min: 4.33   Max: 11.48
Current: 6.94

4.33
11.48
HSY's Net Margin is ranked higher than
71% of the 1506 Companies
in the Global Confectioners industry.

( Industry Median: 3.07 vs. HSY: 6.94 )

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.

The Hershey Co'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 )
=846.912/7421.768
=11.41 %

The Hershey Co's Net Margin for the quarter that ended in Sep. 2015 is calculated as

Net Margin=Net Income (Q: Sep. 2015 )/Revenue (Q: Sep. 2015 )
=154.771/1960.779
=7.89 %

* 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.

The Hershey Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
netmargin 11.314.336.078.238.9910.349.9511.4811.416.94

The Hershey Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
netmargin 12.579.5113.4910.6511.4110.0712.63-6.337.8911.18
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