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Power-One, Inc. (NAS:PWER)
Net Margin
-3.50% (As of Mar. 2013)

Net margin is calculated as net income divided by its revenue. Power-One, Inc.'s net income for the three months ended in Mar. 2013 was \$-7 Mil. Power-One, Inc.'s revenue for the three months ended in Mar. 2013 was \$205 Mil. Therefore, Power-One, Inc.'s net margin for the quarter that ended in Mar. 2013 was -3.50%.

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.

Power-One, Inc.'s Net Margin for the fiscal year that ended in Dec. 2012 is calculated as

 Net Margin = Net Income (A: Dec. 2012 ) / Revenue (A: Dec. 2012 ) = 55.662 / 1022.578 = 5.44 %

Power-One, Inc.'s Net Margin for the quarter that ended in Mar. 2013 is calculated as

 Net Margin = Net Income (Q: Mar. 2013 ) / Revenue (Q: Mar. 2013 ) = -7.161 / 204.607 = -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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Power-One, Inc. Annual Data

 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 netmargin -7.10 -7.56 -14.64 -4.33 -7.11 -3.26 -14.66 14.12 13.41 5.44

Power-One, Inc. Quarterly Data

 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 netmargin 14.85 12.60 12.17 16.91 12.13 2.21 14.53 7.45 -8.95 -3.50
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