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Xyratex, Ltd. (NAS:XRTX)
Net Margin
-11.54% (As of Nov. 2013)

Net margin is calculated as net income divided by its revenue. Xyratex, Ltd.'s net income for the three months ended in Nov. 2013 was \$-21.4 Mil. Xyratex, Ltd.'s revenue for the three months ended in Nov. 2013 was \$185.3 Mil. Therefore, Xyratex, Ltd.'s net margin for the quarter that ended in Nov. 2013 was -11.54%.

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.

Xyratex, Ltd.'s Net Margin for the fiscal year that ended in Nov. 2013 is calculated as

 Net Margin = Net Income (A: Nov. 2013 ) / Revenue (A: Nov. 2013 ) = -21.211 / 814.318 = -2.60 %

Xyratex, Ltd.'s Net Margin for the quarter that ended in Nov. 2013 is calculated as

 Net Margin = Net Income (Q: Nov. 2013 ) / Revenue (Q: Nov. 2013 ) = -21.371 / 185.254 = -11.54 %

* 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Xyratex, Ltd. Annual Data

 Nov04 Nov05 Nov06 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 netmargin -29.45 6.20 5.91 3.02 -4.56 -1.89 8.70 1.95 1.52 -2.60

Xyratex, Ltd. Quarterly Data

 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 netmargin 2.67 4.78 3.67 2.17 2.81 -2.99 -2.63 1.36 1.08 -11.54
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