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Net margin is calculated as net income divided by its revenue. LinkedIn Corp's net income for the three months ended in Mar. 2016 was $-46 Mil. LinkedIn Corp's revenue for the three months ended in Mar. 2016 was $861 Mil. Therefore, LinkedIn Corp's net margin for the quarter that ended in Mar. 2016 was -5.32%.
Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.
LinkedIn Corp's Net Margin for the fiscal year that ended in Dec. 2015 is calculated as
LinkedIn Corp's Net Margin for the quarter that ended in Mar. 2016 is calculated as
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a companys 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.
LinkedIn Corp Annual Data
LinkedIn Corp Quarterly Data