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Shire PLC (NAS:SHPG)
Net Margin
34.82% (As of Jun. 2014)

Net margin is calculated as net income divided by its revenue. Shire PLC's net income for the three months ended in Jun. 2014 was $523 Mil. Shire PLC's revenue for the three months ended in Jun. 2014 was $1,502 Mil. Therefore, Shire PLC's net margin for the quarter that ended in Jun. 2014 was 34.82%.

SHPG' s 10-Year Net Margin Range
Min: -59.59   Max: 24.16
Current: 20.38

-59.59
24.16
SHPG's Net Marginis ranked higher than
93% of the 825 Companies
in the Global Biotechnology industry.

( Industry Median: -70.66 vs. SHPG: 20.38 )

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.

Shire PLC'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 )
=665.1/4934.3
=13.48 %

Shire PLC'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 )
=523.1/1502.1
=34.82 %

* 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.

Shire PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 19.73-25.6915.49-59.595.1616.3416.9420.2915.9213.48

Shire PLC Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
netmargin 20.3419.6920.653.505.5820.2522.505.0717.1134.82
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