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R.R. Donnelley & Sons Company (NAS:RRD)
Net Margin
3.77% (As of Dec. 2013)

Net margin is calculated as net income divided by its revenue. R.R. Donnelley & Sons Company's net income for the three months ended in Dec. 2013 was $104 Mil. R.R. Donnelley & Sons Company's revenue for the three months ended in Dec. 2013 was $2,755 Mil. Therefore, R.R. Donnelley & Sons Company's net margin for the quarter that ended in Dec. 2013 was 3.77%.

RRD' s 10-Year Net Margin Range
Min: -6.37   Max: 5.95
Current: 2.02

-6.37
5.95
RRD's Net Marginis ranked higher than
57% of the 950 Companies
in the Global Business Services industry.

( Industry Median: 4.59 vs. RRD: 2.02 )

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.

R.R. Donnelley & Sons Company's Net Margin for the fiscal year that ended in Dec. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=211.2/10480.3
=2.02 %

R.R. Donnelley & Sons Company's Net Margin for the quarter that ended in Dec. 2013 is calculated as

Net Margin=Net Income (Q: Dec. 2013 )/Revenue (Q: Dec. 2013 )
=104/2755.3
=3.77 %

* 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.

R.R. Donnelley & Sons Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 2.491.634.30-0.42-1.64-0.282.21-1.16-6.372.02

R.R. Donnelley & Sons Company Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
netmargin 5.89-12.011.483.512.85-31.921.072.540.563.77
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