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Li & Fung Ltd (OTCPK:LFUGF)
Net Margin
3.25% (As of Dec. 2014)

Net margin is calculated as net income divided by its revenue. Li & Fung Ltd's net income for the six months ended in Dec. 2014 was $344 Mil. Li & Fung Ltd's revenue for the six months ended in Dec. 2014 was $10,579 Mil. Therefore, Li & Fung Ltd's net margin for the quarter that ended in Dec. 2014 was 3.25%.

LFUGF' s 10-Year Net Margin Range
Min: 2.19   Max: 3.97
Current: 2.43

2.19
3.97
LFUGF's Net Marginis ranked lower than
57% of the 733 Companies
in the Global Business Services industry.

( Industry Median: 3.74 vs. LFUGF: 2.43 )

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.

Li & Fung Ltd'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 )
=469.646/19288.499
=2.43 %

Li & Fung Ltd's Net Margin for the quarter that ended in Dec. 2014 is calculated as

Net Margin=Net Income (Q: Dec. 2014 )/Revenue (Q: Dec. 2014 )
=343.89/10578.899
=3.25 %

* 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.

Li & Fung Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
netmargin 3.223.243.312.193.223.453.403.083.972.43

Li & Fung Ltd Semi-Annual Data

Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14
netmargin 4.192.922.693.963.432.791.326.101.443.25
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