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M D C Holdings Inc (NYSE:MDC)
Net Margin
3.61% (As of Mar. 2014)

Net margin is calculated as net income divided by its revenue. M D C Holdings Inc's net income for the three months ended in Mar. 2014 was $12 Mil. M D C Holdings Inc's revenue for the three months ended in Mar. 2014 was $319 Mil. Therefore, M D C Holdings Inc's net margin for the quarter that ended in Mar. 2014 was 3.61%.

MDC' s 10-Year Net Margin Range
Min: -26.1   Max: 19.3
Current: 19.3

-26.1
19.3
MDC's Net Marginis ranked higher than
96% of the 423 Companies
in the Global Residential Construction industry.

( Industry Median: 3.79 vs. MDC: 19.30 )

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.

M D C Holdings 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 )
=314.385/1629.175
=19.30 %

M D C Holdings Inc's Net Margin for the quarter that ended in Mar. 2014 is calculated as

Net Margin=Net Income (Q: Mar. 2014 )/Revenue (Q: Mar. 2014 )
=11.504/318.534
=3.61 %

* 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.

M D C Holdings Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 9.7510.344.46-22.07-26.102.75-6.99-12.045.4219.30

M D C Holdings Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
netmargin -7.871.223.966.028.276.7954.068.097.303.61
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