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Procter & Gamble Co (NYSE:PG)
Net Margin
12.12% (As of Jun. 2016)

Net margin is calculated as net income divided by its revenue. Procter & Gamble Co's net income for the three months ended in Jun. 2016 was $1,951 Mil. Procter & Gamble Co's revenue for the three months ended in Jun. 2016 was $16,102 Mil. Therefore, Procter & Gamble Co's net margin for the quarter that ended in Jun. 2016 was 12.12%.

PG' s Net Margin Range Over the Past 10 Years
Min: 9.22   Max: 17
Current: 16.27

9.22
17
PG's Net Margin is ranked higher than
90% of the 1602 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.67 vs. PG: 16.27 )

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.

Procter & Gamble Co's Net Margin for the fiscal year that ended in Jun. 2016 is calculated as

Net Margin=Net Income (A: Jun. 2016 )/Revenue (A: Jun. 2016 )
=10508/65299
=16.09 %

Procter & Gamble Co's Net Margin for the quarter that ended in Jun. 2016 is calculated as

Net Margin=Net Income (Q: Jun. 2016 )/Revenue (Q: Jun. 2016 )
=1951/16102
=12.12 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Procter & Gamble Co Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
netmargin 13.5214.7717.0016.1314.2912.8513.4414.029.2216.09

Procter & Gamble Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
netmargin 13.569.5711.7711.872.9315.7418.9517.4512.1216.43
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