Magic Software Enterprises (Magic Software Enterprises) Net Margin % : 5.52% (As of Sep. 2023)

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What is Magic Software Enterprises Net Margin %?

Net margin is calculated as Net Income divided by its Revenue. Magic Software Enterprises's Net Income for the three months ended in Sep. 2023 was $7.1 Mil. Magic Software Enterprises's Revenue for the three months ended in Sep. 2023 was $129.5 Mil. Therefore, Magic Software Enterprises's net margin for the quarter that ended in Sep. 2023 was 5.52%.

The historical rank and industry rank for Magic Software Enterprises's Net Margin % or its related term are showing as below:

MGIC' s Net Margin % Range Over the Past 10 Years
Min: 5.98 Med: 7.01 Max: 10.95
Current: 6.85

MGIC's Net Margin % is ranked better than
68.78% of 2761 companies
in the Software industry
Industry Median: 1.73 vs MGIC: 6.85

Magic Software Enterprises Net Margin % Historical Data

The historical data trend for Magic Software Enterprises's Net Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Magic Software Enterprises Net Margin % Chart

Magic Software Enterprises Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Net Margin %

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6.99

6.22

6.79

6.20

7.14

Magic Software Enterprises Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Net Margin %	Get a 7-Day Free Trial															8.09	6.50	7.10	8.21	5.52

Competitive Comparison of Magic Software Enterprises's Net Margin %

For the Information Technology Services subindustry, Magic Software Enterprises's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Magic Software Enterprises's Net Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Magic Software Enterprises's Net Margin % distribution charts can be found below:

* The bar in red indicates where Magic Software Enterprises's Net Margin % falls into.

Magic Software Enterprises Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Magic Software Enterprises's Net Margin for the fiscal year that ended in Dec. 2022 is calculated as

Net Margin	=	Net Income (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	40.47	/	566.792
	=	7.14 %

Magic Software Enterprises's Net Margin for the quarter that ended in Sep. 2023 is calculated as

Net Margin	=	Net Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	7.146	/	129.484
	=	5.52 %

Magic Software Enterprises (NAS:MGIC) Net Margin % 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.

Magic Software Enterprises Net Margin % Related Terms

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Magic Software Enterprises (Magic Software Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Magic Software Enterprises Ltd (NAS:MGIC) » Definitions » Net Margin %

Comparable Companies

Traded in Other Exchanges

MGIC:Israel MGK:Germany MGK:Germany

Address

Yahadut Canada 1 Street, Or Yehuda, Or Yehuda, ISR, 6037501

Website

https://www.magicsoftware.com

Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. It generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel; Europe; Japan, and Other countries.