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Tiffany & Co (NYSE:TIF)
Net Margin
12.41% (As of Apr. 2014)

Net margin is calculated as net income divided by its revenue. Tiffany & Co's net income for the three months ended in Apr. 2014 was $126 Mil. Tiffany & Co's revenue for the three months ended in Apr. 2014 was $1,012 Mil. Therefore, Tiffany & Co's net margin for the quarter that ended in Apr. 2014 was 12.41%.

TIF' s 10-Year Net Margin Range
Min: 4.5   Max: 13.8
Current: 4.5

4.5
13.8
TIF's Net Marginis ranked higher than
77% of the 1081 Companies
in the Global Luxury Goods industry.

( Industry Median: 3.54 vs. TIF: 4.50 )

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.

Tiffany & Co's Net Margin for the fiscal year that ended in Jan. 2014 is calculated as

Net Margin=Net Income (A: Jan. 2014 )/Revenue (A: Jan. 2014 )
=181.369/4031.13
=4.50 %

Tiffany & Co's Net Margin for the quarter that ended in Apr. 2014 is calculated as

Net Margin=Net Income (Q: Apr. 2014 )/Revenue (Q: Apr. 2014 )
=125.609/1012.132
=12.41 %

* 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.

Tiffany & Co Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
netmargin 13.8011.0110.6611.017.729.7711.9412.0610.974.50

Tiffany & Co Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
netmargin 15.029.9510.357.4114.549.3311.5310.38-7.9812.41
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