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JPMorgan Chase & Co (NYSE:JPM)
Net Margin
22.94% (As of Mar. 2014)

Net margin is calculated as net income divided by its revenue. JPMorgan Chase & Co's net income for the three months ended in Mar. 2014 was $5,274 Mil. JPMorgan Chase & Co's revenue for the three months ended in Mar. 2014 was $22,993 Mil. Therefore, JPMorgan Chase & Co's net margin for the quarter that ended in Mar. 2014 was 22.94%.

JPM' s 10-Year Net Margin Range
Min: 5.62   Max: 24.25
Current: 18.55

5.62
24.25
JPM's Net Marginis ranked higher than
69% of the 1613 Companies
in the Global Banks - Global industry.

( Industry Median: 21.45 vs. JPM: 18.55 )

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.

JPMorgan Chase & Co'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 )
=17923/96606
=18.55 %

JPMorgan Chase & Co'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 )
=5274/22993
=22.94 %

* 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.

JPMorgan Chase & Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 10.5415.7823.5121.538.3311.6816.9119.5221.9418.55

JPMorgan Chase & Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
netmargin 17.3618.9022.3622.7024.0625.9925.77-1.6422.7922.94
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