Switch to:
Walgreen Co (NYSE:WAG)
Net Margin
-1.25% (As of Aug. 2014)

Net margin is calculated as net income divided by its revenue. Walgreen Co's net income for the three months ended in Aug. 2014 was $-239 Mil. Walgreen Co's revenue for the three months ended in Aug. 2014 was $19,057 Mil. Therefore, Walgreen Co's net margin for the quarter that ended in Aug. 2014 was -1.25%.

WAG' s 10-Year Net Margin Range
Min: 2.53   Max: 3.8
Current: 2.53

2.53
3.8
WAG's Net Marginis ranked higher than
81% of the 559 Companies
in the Global Pharmaceutical Retailers industry.

( Industry Median: 2.15 vs. WAG: 2.53 )

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.

Walgreen Co's Net Margin for the fiscal year that ended in Aug. 2014 is calculated as

Net Margin=Net Income (A: Aug. 2014 )/Revenue (A: Aug. 2014 )
=1932/76392
=2.53 %

Walgreen Co's Net Margin for the quarter that ended in Aug. 2014 is calculated as

Net Margin=Net Income (Q: Aug. 2014 )/Revenue (Q: Aug. 2014 )
=-239/19057
=-1.25 %

* 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.

Walgreen Co Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
netmargin 3.703.693.803.653.173.103.762.973.392.53

Walgreen Co Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
netmargin 3.032.072.394.053.413.663.793.853.72-1.25
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK