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Procter & Gamble Co (NYSE:PG)
Net Margin
15.39% (As of Dec. 2013)

Net margin is calculated as net income divided by its revenue. Procter & Gamble Co's net income for the three months ended in Dec. 2013 was $3,428 Mil. Procter & Gamble Co's revenue for the three months ended in Dec. 2013 was $22,280 Mil. Therefore, Procter & Gamble Co's net margin for the quarter that ended in Dec. 2013 was 15.39%.

PG' s 10-Year Net Margin Range
Min: 7.45   Max: 17.52
Current: 13.44

7.45
17.52
PG's Net Marginis ranked higher than
92% of the 1416 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.99 vs. PG: 13.44 )

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. 2013 is calculated as

Net Margin=Net Income (A: Jun. 2013 )/Revenue (A: Jun. 2013 )
=11312/84167
=13.44 %

Procter & Gamble Co'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 )
=3428/22280
=15.39 %

* 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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
netmargin 11.9812.2012.7313.5214.7717.5216.1314.5512.8513.44

Procter & Gamble Co Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
netmargin 14.057.7711.9417.9613.5718.3012.469.0814.2715.39
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