Switch to:
Procter & Gamble Co (NYSE:PG)
Net Margin
13.56% (As of Jun. 2014)

Net margin is calculated as net income divided by its revenue. Procter & Gamble Co's net income for the three months ended in Jun. 2014 was $2,579 Mil. Procter & Gamble Co's revenue for the three months ended in Jun. 2014 was $19,018 Mil. Therefore, Procter & Gamble Co's net margin for the quarter that ended in Jun. 2014 was 13.56%.

PG' s 10-Year Net Margin Range
Min: 7.45   Max: 17
Current: 14.02

7.45
17
PG's Net Marginis ranked higher than
92% of the 1528 Companies
in the Global Household & Personal Products industry.

( Industry Median: 4.16 vs. PG: 14.02 )

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. 2014 is calculated as

Net Margin=Net Income (A: Jun. 2014 )/Revenue (A: Jun. 2014 )
=11643/83062
=14.02 %

Procter & Gamble Co's Net Margin for the quarter that ended in Jun. 2014 is calculated as

Net Margin=Net Income (Q: Jun. 2014 )/Revenue (Q: Jun. 2014 )
=2579/19018
=13.56 %

* 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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
netmargin 12.7912.7313.5214.7717.0016.1314.2912.8513.4414.02

Procter & Gamble Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
netmargin 11.9417.9613.5718.3012.469.0814.2715.3912.6913.56
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK