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Johnson & Johnson (NYSE:JNJ)
Net Margin
26.09% (As of Mar. 2014)

Net margin is calculated as net income divided by its revenue. Johnson & Johnson's net income for the three months ended in Mar. 2014 was $4,727 Mil. Johnson & Johnson's revenue for the three months ended in Mar. 2014 was $18,115 Mil. Therefore, Johnson & Johnson's net margin for the quarter that ended in Mar. 2014 was 26.09%.

JNJ' s 10-Year Net Margin Range
Min: 12.52   Max: 21.65
Current: 19.4

12.52
21.65
JNJ's Net Marginis ranked higher than
92% of the 715 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 7.07 vs. JNJ: 19.40 )

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.

Johnson & Johnson'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 )
=13831/71312
=19.40 %

Johnson & Johnson's Net Margin for the quarter that ended in Mar. 2014 is calculated as

Net Margin=Net Income (Q: Mar. 2014 )/Revenue (Q: Mar. 2014 )
=4727/18115
=26.09 %

* 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.

Johnson & Johnson Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 17.2819.9220.7317.3120.3119.8221.6514.8716.1419.40

Johnson & Johnson Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
netmargin 1.3424.238.5517.4114.6219.9821.4416.9719.1726.09
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