Switch to:
Coca-Cola Co (NYSE:KO)
Net Margin
15.31% (As of Mar. 2014)

Net margin is calculated as net income divided by its revenue. Coca-Cola Co's net income for the three months ended in Mar. 2014 was $1,619 Mil. Coca-Cola Co's revenue for the three months ended in Mar. 2014 was $10,576 Mil. Therefore, Coca-Cola Co's net margin for the quarter that ended in Mar. 2014 was 15.31%.

KO' s 10-Year Net Margin Range
Min: 10.95   Max: 33.56
Current: 18.32

10.95
33.56
KO's Net Marginis ranked higher than
95% of the 108 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 5.85 vs. KO: 18.32 )

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.

Coca-Cola 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 )
=8584/46854
=18.32 %

Coca-Cola 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 )
=1619/10576
=15.31 %

* 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.

Coca-Cola Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 22.2921.0921.0920.7318.1822.0233.5618.4418.7818.32

Coca-Cola Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
netmargin 15.0118.4421.3118.7316.2915.8720.9920.3415.4915.31
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide