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Primus Guaranty Ltd (OTCPK:PRSG)
Net Margin
98.05% (As of Dec. 2011)

Net margin is calculated as net income divided by its revenue. Primus Guaranty Ltd's net income for the three months ended in Dec. 2011 was $101.2 Mil. Primus Guaranty Ltd's revenue for the three months ended in Dec. 2011 was $103.2 Mil. Therefore, Primus Guaranty Ltd's net margin for the quarter that ended in Dec. 2011 was 98.05%.

PRSG' s 10-Year Net Margin Range
Min: 0   Max: 0
Current: 0

PRSG's Net Marginis ranked lower than
66% of the 177 Companies
in the Global Credit Services industry.

( Industry Median: 14.66 vs. PRSG: 0.00 )

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.

Primus Guaranty Ltd's Net Margin for the fiscal year that ended in Dec. 2011 is calculated as

Net Margin=Net Income (A: Dec. 2011 )/Revenue (A: Dec. 2011 )
=-33.765/-24.48
=137.93 %

Primus Guaranty Ltd's Net Margin for the quarter that ended in Dec. 2011 is calculated as

Net Margin=Net Income (Q: Dec. 2011 )/Revenue (Q: Dec. 2011 )
=101.16/103.167
=98.05 %

* 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.

Primus Guaranty Ltd Annual Data

Dec02Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11
netmargin -18.7373.9944.8011.4964.17-2,290.91101.8697.5690.08137.93

Primus Guaranty Ltd Quarterly Data

Sep09Dec09Mar10Jun10Sep10Dec10Mar11Jun11Sep11Dec11
netmargin 97.4898.11189.63101.2998.7388.1694.9799.18100.7998.05
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