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Western Digital Corporation (NAS:WDC)
Net Margin
10.83% (As of Dec. 2013)

Net margin is calculated as net income divided by its revenue. Western Digital Corporation's net income for the three months ended in Dec. 2013 was $430 Mil. Western Digital Corporation's revenue for the three months ended in Dec. 2013 was $3,972 Mil. Therefore, Western Digital Corporation's net margin for the quarter that ended in Dec. 2013 was 10.83%.

WDC' s 10-Year Net Margin Range
Min: -17.81   Max: 14.03
Current: 6.38

-17.81
14.03
WDC's Net Marginis ranked higher than
78% of the 2465 Companies
in the Global Data Storage industry.

( Industry Median: 2.74 vs. WDC: 6.38 )

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.

Western Digital Corporation's Net Margin for the fiscal year that ended in Jun. 2013 is calculated as

Net Margin=Net Income (A: Jun. 2013 )/Revenue (A: Jun. 2013 )
=980/15351
=6.38 %

Western Digital Corporation's Net Margin for the quarter that ended in Dec. 2013 is calculated as

Net Margin=Net Income (Q: Dec. 2013 )/Revenue (Q: Dec. 2013 )
=430/3972
=10.83 %

* 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.

Western Digital Corporation Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
netmargin 4.925.399.1010.3110.746.3114.037.6212.926.38

Western Digital Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
netmargin 8.877.2715.9115.6712.868.7610.39-7.1113.0110.83
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