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PMC-Sierra Inc (NAS:PMCS)
Net Margin
3.50% (As of Mar. 2015)

Net margin is calculated as net income divided by its revenue. PMC-Sierra Inc's net income for the three months ended in Mar. 2015 was $4.7 Mil. PMC-Sierra Inc's revenue for the three months ended in Mar. 2015 was $133.1 Mil. Therefore, PMC-Sierra Inc's net margin for the quarter that ended in Mar. 2015 was 3.50%.

PMCS' s 10-Year Net Margin Range
Min: -198.01   Max: 26.88
Current: 1.69

-198.01
26.88
PMCS's Net Marginis ranked higher than
50% of the 974 Companies
in the Global Semiconductors industry.

( Industry Median: 1.69 vs. PMCS: 1.69 )

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. 2014 is calculated as

Net Margin=Net Income (A: Dec. 2014 )/Revenue (A: Dec. 2014 )
=0.082/525.603
=0.02 %

PMC-Sierra Inc's Net Margin for the quarter that ended in Mar. 2015 is calculated as

Net Margin=Net Income (Q: Mar. 2015 )/Revenue (Q: Mar. 2015 )
=4.655/133.071
=3.50 %

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
netmargin 9.60-23.50-10.9324.439.4512.0110.85-60.31-6.350.02

PMC-Sierra Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
netmargin 14.45-6.81-3.77-2.52-12.36-3.35-2.744.041.703.50
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