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Novo Nordisk A/S (NYSE:NVO)
Net Margin
28.60% (As of Dec. 2015)

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. 2015 was $1,205 Mil. Novo Nordisk A/S's revenue for the three months ended in Dec. 2015 was $4,214 Mil. Therefore, Novo Nordisk A/S's net margin for the quarter that ended in Dec. 2015 was 28.60%.

NVO' s Net Margin Range Over the Past 10 Years
Min: 16.65   Max: 32.3
Current: 32.3

16.65
32.3
NVO's Net Margin is ranked higher than
93% of the 728 Companies
in the Global Biotechnology industry.

( Industry Median: -68.08 vs. NVO: 32.30 )

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.

Novo Nordisk A/S's Net Margin for the fiscal year that ended in Dec. 2015 is calculated as

Net Margin=Net Income (A: Dec. 2015 )/Revenue (A: Dec. 2015 )
=5086.82328907/15748.8691084
=32.30 %

Novo Nordisk A/S's Net Margin for the quarter that ended in Dec. 2015 is calculated as

Net Margin=Net Income (Q: Dec. 2015 )/Revenue (Q: Dec. 2015 )
=1205.0196994/4213.62906756
=28.60 %

* 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
netmargin 16.6520.3821.1721.0823.7025.7727.4730.1329.8232.30

Novo Nordisk A/S Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
netmargin 31.2827.9031.7532.3429.2126.5639.1930.8331.2928.60
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