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Valspar Corp (NYSE:VAL)
Net Margin
5.60% (As of Jan. 2014)

Net margin is calculated as net income divided by its revenue. Valspar Corp's net income for the three months ended in Jan. 2014 was $54 Mil. Valspar Corp's revenue for the three months ended in Jan. 2014 was $956 Mil. Therefore, Valspar Corp's net margin for the quarter that ended in Jan. 2014 was 5.60%.

VAL' s 10-Year Net Margin Range
Min: -3.51   Max: 7.27
Current: 7.05

-3.51
7.27
VAL's Net Marginis ranked higher than
81% of the 969 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.76 vs. VAL: 7.05 )

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.

Valspar Corp's Net Margin for the fiscal year that ended in Oct. 2013 is calculated as

Net Margin=Net Income (A: Oct. 2013 )/Revenue (A: Oct. 2013 )
=289.255/4103.776
=7.05 %

Valspar Corp's Net Margin for the quarter that ended in Jan. 2014 is calculated as

Net Margin=Net Income (Q: Jan. 2014 )/Revenue (Q: Jan. 2014 )
=53.553/956.119
=5.60 %

* 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.

Valspar Corp Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
netmargin 5.855.445.885.304.335.566.88-3.517.277.05

Valspar Corp Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
netmargin -28.246.307.418.017.206.297.468.615.735.60
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