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RR Donnelley & Sons Co (NAS:RRD)
Net Margin
2.23% (As of Jun. 2014)

Net margin is calculated as net income divided by its revenue. RR Donnelley & Sons Co's net income for the three months ended in Jun. 2014 was $65 Mil. RR Donnelley & Sons Co's revenue for the three months ended in Jun. 2014 was $2,903 Mil. Therefore, RR Donnelley & Sons Co's net margin for the quarter that ended in Jun. 2014 was 2.23%.

RRD' s 10-Year Net Margin Range
Min: -6.37   Max: 5.95
Current: 1.41

-6.37
5.95
RRD's Net Marginis ranked higher than
56% of the 1002 Companies
in the Global Business Services industry.

( Industry Median: 4.69 vs. RRD: 1.41 )

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.

RR Donnelley & Sons Co'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 %

RR Donnelley & Sons Co's Net Margin for the quarter that ended in Jun. 2014 is calculated as

Net Margin=Net Income (Q: Jun. 2014 )/Revenue (Q: Jun. 2014 )
=64.7/2902.5
=2.23 %

* 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.

RR Donnelley & Sons Co Annual Data

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

RR Donnelley & Sons Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
netmargin 1.483.512.85-31.921.072.540.563.77-1.082.23
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