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Novo Nordisk A/S (NYSE:NVO)
Net Margin
27.90% (As of Dec. 2013)

Net margin is calculated as net income divided by its revenue. Novo Nordisk A/S's net income for the three months ended in Dec. 2013 was $1,105 Mil. Novo Nordisk A/S's revenue for the three months ended in Dec. 2013 was $3,960 Mil. Therefore, Novo Nordisk A/S's net margin for the quarter that ended in Dec. 2013 was 27.90%.

NVO' s 10-Year Net Margin Range
Min: 11.39   Max: 27.47
Current: 27.47

11.39
27.47
NVO's Net Marginis ranked higher than
95% of the 785 Companies
in the Global Biotechnology industry.

( Industry Median: -56.37 vs. NVO: 27.47 )

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.

Novo Nordisk A/S'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 )
=4596.45920788/15253.1483847
=30.13 %

Novo Nordisk A/S's Net Margin for the quarter that ended in Dec. 2013 is calculated as

Net Margin=Net Income (Q: Dec. 2013 )/Revenue (Q: Dec. 2013 )
=1104.763643/3960.21171747
=27.90 %

* 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.

Novo Nordisk A/S Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 17.2717.3716.6520.3821.1721.0823.7025.7727.4730.13

Novo Nordisk A/S Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
netmargin 25.4125.8826.2727.4628.5627.4529.9431.5031.2827.90
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