Switch to:
Level 3 Communications Inc (NYSE:LVLT)
Net Margin
3.14% (As of Jun. 2014)

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. 2014 was $51 Mil. Level 3 Communications Inc's revenue for the three months ended in Jun. 2014 was $1,625 Mil. Therefore, Level 3 Communications Inc's net margin for the quarter that ended in Jun. 2014 was 3.14%.

LVLT' s 10-Year Net Margin Range
Min: -324.72   Max: 205.1
Current: -1.73

-324.72
205.1
LVLT's Net Marginis ranked higher than
66% of the 835 Companies
in the Global Telecom Services industry.

( Industry Median: 7.47 vs. LVLT: -1.73 )

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 Dec. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=-109/6313
=-1.73 %

Level 3 Communications Inc'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 )
=51/1625
=3.14 %

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin -12.34-17.66-22.02-26.10-6.74-16.43-17.04-17.45-6.62-1.73

Level 3 Communications Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
netmargin -8.70-3.91-10.44-3.47-4.95-1.53-1.340.876.963.14
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