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Procter & Gamble Co (NYSE:PG)
Net Margin
18.95% (As of Dec. 2015)

Net margin is calculated as net income divided by its revenue. Procter & Gamble Co's net income for the three months ended in Dec. 2015 was $3,206 Mil. Procter & Gamble Co's revenue for the three months ended in Dec. 2015 was $16,915 Mil. Therefore, Procter & Gamble Co's net margin for the quarter that ended in Dec. 2015 was 18.95%.

PG' s Net Margin Range Over the Past 10 Years
Min: 9.22   Max: 17
Current: 12.23

9.22
17
PG's Net Margin is ranked higher than
85% of the 1492 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.06 vs. PG: 12.23 )

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. 2015 is calculated as

Net Margin=Net Income (A: Jun. 2015 )/Revenue (A: Jun. 2015 )
=7036/76279
=9.22 %

Procter & Gamble Co'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 )
=3206/16915
=18.95 %

* 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.

Procter & Gamble Co Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
netmargin 12.7313.5214.7717.5216.1314.5512.8513.7014.469.22

Procter & Gamble Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
netmargin 14.5316.2513.280.0010.6012.8311.870.0015.7418.95
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