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Wal-Mart Stores Inc (NYSE:WMT)
Net Margin
3.12% (As of Oct. 2014)

Net margin is calculated as net income divided by its revenue. Wal-Mart Stores Inc's net income for the three months ended in Oct. 2014 was $3,711 Mil. Wal-Mart Stores Inc's revenue for the three months ended in Oct. 2014 was $119,001 Mil. Therefore, Wal-Mart Stores Inc's net margin for the quarter that ended in Oct. 2014 was 3.12%.

WMT' s 10-Year Net Margin Range
Min: 2.91   Max: 3.89
Current: 3.27

2.91
3.89
WMT's Net Marginis ranked higher than
85% of the 559 Companies
in the Global Discount Stores industry.

( Industry Median: 2.15 vs. WMT: 3.27 )

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.

Wal-Mart Stores Inc'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 )
=16022/476294
=3.36 %

Wal-Mart Stores Inc's Net Margin for the quarter that ended in Oct. 2014 is calculated as

Net Margin=Net Income (Q: Oct. 2014 )/Revenue (Q: Oct. 2014 )
=3711/119001
=3.12 %

* 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.

Wal-Mart Stores Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
netmargin 3.613.603.243.363.313.523.893.513.633.36

Wal-Mart Stores Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
netmargin 3.513.194.393.323.483.233.423.133.413.12
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