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Pier 1 Imports Inc (NYSE:PIR)
Net Margin
2.19% (As of Aug. 2014)

Net margin is calculated as net income divided by its revenue. Pier 1 Imports Inc's net income for the three months ended in Aug. 2014 was $9 Mil. Pier 1 Imports Inc's revenue for the three months ended in Aug. 2014 was $419 Mil. Therefore, Pier 1 Imports Inc's net margin for the quarter that ended in Aug. 2014 was 2.19%.

PIR' s 10-Year Net Margin Range
Min: -14.02   Max: 11.02
Current: 5.14

-14.02
11.02
PIR's Net Marginis ranked higher than
82% of the 1281 Companies
in the Global Home Improvement Stores industry.

( Industry Median: 3.32 vs. PIR: 5.14 )

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.

Pier 1 Imports Inc's Net Margin for the fiscal year that ended in Feb. 2014 is calculated as

Net Margin=Net Income (A: Feb. 2014 )/Revenue (A: Feb. 2014 )
=107.531/1771.743
=6.07 %

Pier 1 Imports Inc's Net Margin for the quarter that ended in Aug. 2014 is calculated as

Net Margin=Net Income (Q: Aug. 2014 )/Revenue (Q: Aug. 2014 )
=9.158/418.622
=2.19 %

* 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.

Pier 1 Imports Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
netmargin 3.19-2.24-14.02-6.35-9.796.737.1711.027.596.07

Pier 1 Imports Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
netmargin 4.947.145.5811.195.154.515.758.263.592.19
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