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M D C Holdings Inc (NYSE:MDC)
Net Margin
2.89% (As of Dec. 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 Dec. 2014 was $15 Mil. M D C Holdings Inc's revenue for the three months ended in Dec. 2014 was $506 Mil. Therefore, M D C Holdings Inc's net margin for the quarter that ended in Dec. 2014 was 2.89%.

MDC' s 10-Year Net Margin Range
Min: -26.1   Max: 18.71
Current: 3.77

-26.1
18.71
MDC's Net Marginis ranked higher than
74% of the 920 Companies
in the Global Residential Construction industry.

( Industry Median: 2.19 vs. MDC: 3.77 )

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. 2014 is calculated as

Net Margin=Net Income (A: Dec. 2014 )/Revenue (A: Dec. 2014 )
=63.143/1694.584
=3.73 %

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

Net Margin=Net Income (Q: Dec. 2014 )/Revenue (Q: Dec. 2014 )
=14.639/505.672
=2.89 %

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
netmargin 10.344.46-22.07-26.102.75-6.76-12.045.4218.713.73

M D C Holdings Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
netmargin 6.028.276.7955.938.096.503.615.003.692.89
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