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Li & Fung Ltd (OTCPK:LFUGF)
Net Margin
1.44% (As of Jun. 2014)

Net margin is calculated as net income divided by its revenue. Li & Fung Ltd's net income for the six months ended in Jun. 2014 was $126 Mil. Li & Fung Ltd's revenue for the six months ended in Jun. 2014 was $8,710 Mil. Therefore, Li & Fung Ltd's net margin for the quarter that ended in Jun. 2014 was 1.44%.

LFUGF' s 10-Year Net Margin Range
Min: 2.19   Max: 3.64
Current: 3.67

2.19
3.64
LFUGF's Net Marginis ranked higher than
72% of the 1088 Companies
in the Global Integrated Shipping & Logistics industry.

( Industry Median: 4.26 vs. LFUGF: 3.67 )

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. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=755.287/20745.41
=3.64 %

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

Net Margin=Net Income (Q: Jun. 2014 )/Revenue (Q: Jun. 2014 )
=125.756/8709.6
=1.44 %

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 3.163.223.243.312.193.223.453.403.083.64

Li & Fung Ltd Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
netmargin 3.394.192.922.693.963.432.791.325.241.44
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