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National Grid PLC (NYSE:NGG)
Net Margin
15.26% (As of Mar. 2014)

Net margin is calculated as net income divided by its revenue. National Grid PLC's net income for the six months ended in Mar. 2014 was $2,067 Mil. National Grid PLC's revenue for the six months ended in Mar. 2014 was $13,548 Mil. Therefore, National Grid PLC's net margin for the quarter that ended in Mar. 2014 was 15.26%.

NGG' s 10-Year Net Margin Range
Min: -4.5   Max: 69.49
Current: 16.72

-4.5
69.49
NGG's Net Marginis ranked higher than
92% of the 848 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 7.59 vs. NGG: 16.72 )

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.

National Grid PLC'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 )
=4147.40368509/24805.6951424
=16.72 %

National Grid PLC'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 )
=2067.00167504/13547.7386935
=15.26 %

* 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.

National Grid PLC Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
netmargin 10.6641.8815.8827.746.029.9015.0514.7215.9816.72

National Grid PLC Semi-Annual Data

Sep09Mar10Sep10Mar11Sep11Mar12Sep12Mar13Sep13Mar14
netmargin 11.498.6811.8117.6912.6116.4917.2615.0518.4815.26
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