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Level 3 Communications Inc (NYSE:LVLT)
Net Margin
-0.63% (As of Jun. 2015)

Net margin is calculated as net income divided by its revenue. Level 3 Communications Inc's net income for the three months ended in Jun. 2015 was $-13 Mil. Level 3 Communications Inc's revenue for the three months ended in Jun. 2015 was $2,061 Mil. Therefore, Level 3 Communications Inc's net margin for the quarter that ended in Jun. 2015 was -0.63%.

LVLT' s 10-Year Net Margin Range
Min: -324.72   Max: 205.1
Current: 3.4

-324.72
205.1
LVLT's Net Marginis ranked lower than
55% of the 454 Companies
in the Global Telecom Services industry.

( Industry Median: 4.42 vs. LVLT: 3.40 )

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.

Level 3 Communications Inc's Net Margin for the fiscal year that ended in Mar. 2014 is calculated as

Net Margin=Net Income (A: Mar. 2014 )/Revenue (A: Mar. 2014 )
=81/6345
=1.28 %

Level 3 Communications Inc's Net Margin for the quarter that ended in Jun. 2015 is calculated as

Net Margin=Net Income (Q: Jun. 2015 )/Revenue (Q: Jun. 2015 )
=-13/2061
=-0.63 %

* 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.

Level 3 Communications Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
netmargin -10.15-18.75-33.86-15.05-5.75-19.61-16.05-13.77-5.691.28

Level 3 Communications Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
netmargin -4.95-1.53-1.340.876.963.145.223.455.94-0.63
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