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Sherwin-Williams Co (NYSE:SHW)
Net Margin
10.35% (As of Sep. 2014)

Net margin is calculated as net income divided by its revenue. Sherwin-Williams Co's net income for the three months ended in Sep. 2014 was $326 Mil. Sherwin-Williams Co's revenue for the three months ended in Sep. 2014 was $3,151 Mil. Therefore, Sherwin-Williams Co's net margin for the quarter that ended in Sep. 2014 was 10.35%.

SHW' s 10-Year Net Margin Range
Min: 0.31   Max: 7.69
Current: 7.71

0.31
7.69
SHW's Net Marginis ranked higher than
85% of the 1122 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.99 vs. SHW: 7.71 )

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. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=752.561/10185.532
=7.39 %

Sherwin-Williams Co'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 )
=326.24/3150.57
=10.35 %

* 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.

Sherwin-Williams Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 6.436.447.387.695.986.145.955.046.627.39

Sherwin-Williams Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
netmargin 8.859.033.065.369.489.244.734.889.5810.35
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