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Sherwin-Williams Co (NYSE:SHW)
Net Margin
11.79% (As of Sep. 2016)

Net margin is calculated as net income divided by its revenue. Sherwin-Williams Co's net income for the three months ended in Sep. 2016 was $387 Mil. Sherwin-Williams Co's revenue for the three months ended in Sep. 2016 was $3,279 Mil. Therefore, Sherwin-Williams Co's net margin for the quarter that ended in Sep. 2016 was 11.79%.

SHW' s Net Margin Range Over the Past 10 Years
Min: 5.04   Max: 9.5
Current: 9.5

5.04
9.5
SHW's Net Margin is ranked higher than
76% of the 1086 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 4.56 vs. SHW: 9.50 )

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.

Sherwin-Williams Co's Net Margin for the fiscal year that ended in Dec. 2015 is calculated as

Net Margin=Net Income (A: Dec. 2015 )/Revenue (A: Dec. 2015 )
=1053.849/11339.304
=9.29 %

Sherwin-Williams Co's Net Margin for the quarter that ended in Sep. 2016 is calculated as

Net Margin=Net Income (Q: Sep. 2016 )/Revenue (Q: Sep. 2016 )
=386.733/3279.462
=11.79 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Sherwin-Williams Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
netmargin 7.387.695.986.145.955.046.627.397.789.29

Sherwin-Williams Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
netmargin 9.5810.355.175.3611.1711.887.605.7211.7411.79
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