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Wells Fargo & Co (NYSE:WFC)
Net Margin
27.01% (As of Sep. 2014)

Net margin is calculated as net income divided by its revenue. Wells Fargo & Co's net income for the three months ended in Sep. 2014 was $5,729 Mil. Wells Fargo & Co's revenue for the three months ended in Sep. 2014 was $21,213 Mil. Therefore, Wells Fargo & Co's net margin for the quarter that ended in Sep. 2014 was 27.01%.

WFC' s 10-Year Net Margin Range
Min: 6.34   Max: 26.11
Current: 27.47

6.34
26.11
WFC's Net Marginis ranked higher than
85% of the 2032 Companies
in the Global Banks - Global industry.

( Industry Median: 21.42 vs. WFC: 27.47 )

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.

Wells Fargo & 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 )
=21878/83780
=26.11 %

Wells Fargo & 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 )
=5729/21213
=27.01 %

* 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.

Wells Fargo & Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netmargin 23.3323.2823.5920.456.3413.8414.5119.6021.9526.11

Wells Fargo & Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
netmargin 21.7123.2723.1924.3225.8227.2427.1528.5727.1827.01
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