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Rio Tinto PLC (NYSE:RIO)
Net Margin
11.05% (As of Jun. 2016)

Net margin is calculated as net income divided by its revenue. Rio Tinto PLC's net income for the six months ended in Jun. 2016 was $1,713 Mil. Rio Tinto PLC's revenue for the six months ended in Jun. 2016 was $15,500 Mil. Therefore, Rio Tinto PLC's net margin for the quarter that ended in Jun. 2016 was 11.05%.

RIO' s Net Margin Range Over the Past 10 Years
Min: -5.87   Max: 33.11
Current: 0.4

-5.87
33.11
RIO's Net Margin is ranked higher than
58% of the 770 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: -2.41 vs. RIO: 0.40 )

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.

Rio Tinto PLC'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 )
=6527/47664
=13.69 %

Rio Tinto PLC's Net Margin for the quarter that ended in Jun. 2016 is calculated as

Net Margin=Net Income (Q: Jun. 2016 )/Revenue (Q: Jun. 2016 )
=1713/15500
=11.05 %

* 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.

Rio Tinto PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
netmargin 33.1124.626.7711.6525.329.62-5.877.1613.69-2.49

Rio Tinto PLC Semi-Annual Data

Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16
netmargin -5.5923.23-34.637.027.3017.1310.114.48-9.9211.05
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