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Rockwell Automation Inc (NYSE:ROK)
Net Margin
13.96% (As of Sep. 2014)

Net margin is calculated as net income divided by its revenue. Rockwell Automation Inc's net income for the three months ended in Sep. 2014 was $249 Mil. Rockwell Automation Inc's revenue for the three months ended in Sep. 2014 was $1,782 Mil. Therefore, Rockwell Automation Inc's net margin for the quarter that ended in Sep. 2014 was 13.96%.

ROK' s 10-Year Net Margin Range
Min: -6.32   Max: 29.73
Current: 12.48

-6.32
29.73
ROK's Net Marginis ranked higher than
92% of the 2032 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.53 vs. ROK: 12.48 )

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.

Rockwell Automation Inc's Net Margin for the fiscal year that ended in Sep. 2014 is calculated as

Net Margin=Net Income (A: Sep. 2014 )/Revenue (A: Sep. 2014 )
=826.8/6623.5
=12.48 %

Rockwell Automation Inc's Net Margin for the quarter that ended in Sep. 2014 is calculated as

Net Margin=Net Income (Q: Sep. 2014 )/Revenue (Q: Sep. 2014 )
=248.7/1781.8
=13.96 %

* 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.

Rockwell Automation Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
netmargin 13.1313.3229.7310.145.099.5611.6311.7711.9112.48

Rockwell Automation Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
netmargin 12.2211.7310.8411.5512.5412.5512.4511.2712.1113.96
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