Switch to:
PMC-Sierra Inc (NAS:PMCS)
Net Margin
-2.74% (As of Jun. 2014)

Net margin is calculated as net income divided by its revenue. PMC-Sierra Inc's net income for the three months ended in Jun. 2014 was $-3.5 Mil. PMC-Sierra Inc's revenue for the three months ended in Jun. 2014 was $126.8 Mil. Therefore, PMC-Sierra Inc's net margin for the quarter that ended in Jun. 2014 was -2.74%.

PMCS' s 10-Year Net Margin Range
Min: -198.01   Max: 26.88
Current: -5.29

-198.01
26.88
PMCS's Net Marginis ranked higher than
51% of the 1046 Companies
in the Global Semiconductors industry.

( Industry Median: 2.77 vs. PMCS: -5.29 )

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.

PMC-Sierra Inc's Net Margin for the fiscal year that ended in Dec. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=-32.254/508.028
=-6.35 %

PMC-Sierra Inc'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 )
=-3.48/126.822
=-2.74 %

* 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.

PMC-Sierra Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 17.389.60-23.50-10.9324.439.4512.0110.85-60.31-6.35

PMC-Sierra Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
netmargin -50.99-0.07-208.4114.45-6.81-3.77-2.11-13.04-3.35-2.74
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