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GuruFocus has detected 3 Warning Signs with JPMorgan Chase & Co $JPM.
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JPMorgan Chase & Co (NYSE:JPM)
Net Margin %
28.78% (As of Dec. 2016)

Net margin is calculated as net income divided by its revenue. JPMorgan Chase & Co's net income for the three months ended in Dec. 2016 was $6,727 Mil. JPMorgan Chase & Co's revenue for the three months ended in Dec. 2016 was $23,376 Mil. Therefore, JPMorgan Chase & Co's net margin for the quarter that ended in Dec. 2016 was 28.78%.

JPM' s Net Margin % Range Over the Past 10 Years
Min: 8.33   Max: 26.43
Current: 26.43

8.33
26.43
JPM's Net Margin % is ranked higher than
60% of the 1605 Companies
in the Global Banks - Global industry.

( Industry Median: 22.70 vs. JPM: 26.43 )

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. 2016 is calculated as

Net Margin=Net Income (A: Dec. 2016 )/Revenue (A: Dec. 2016 )
=24733/95668
=25.85 %

JPMorgan Chase & Co's Net Margin for the quarter that ended in Dec. 2016 is calculated as

Net Margin=Net Income (Q: Dec. 2016 )/Revenue (Q: Dec. 2016 )
=6727/23376
=28.78 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

JPMorgan Chase & Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
netmargin 21.538.3311.6816.9119.5221.9418.3722.8626.1325.85

JPMorgan Chase & Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
netmargin 21.6724.5726.4229.8723.7423.7525.4325.4828.7826.13
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