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Zipcar Inc (NAS:ZIP)
Net Margin
19.56% (As of Dec. 2012)

Net margin is calculated as net income divided by its revenue. Zipcar Inc's net income for the three months ended in Dec. 2012 was $13.8 Mil. Zipcar Inc's revenue for the three months ended in Dec. 2012 was $70.7 Mil. Therefore, Zipcar Inc's net margin for the quarter that ended in Dec. 2012 was 19.56%.

ZIP' s 10-Year Net Margin Range
Min: -13.7   Max: 5.3
Current: 5.3

-13.7
5.3
ZIP's Net Marginis ranked lower than
78% of the 83 Companies
in the Global Personal Services industry.

( Industry Median: 4.44 vs. ZIP: 5.30 )

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.

Zipcar Inc's Net Margin for the fiscal year that ended in Dec. 2012 is calculated as

Net Margin=Net Income (A: Dec. 2012 )/Revenue (A: Dec. 2012 )
=14.676/278.868
=5.26 %

Zipcar Inc's Net Margin for the quarter that ended in Dec. 2012 is calculated as

Net Margin=Net Income (Q: Dec. 2012 )/Revenue (Q: Dec. 2012 )
=13.826/70.694
=19.56 %

* 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.

Zipcar Inc Annual Data

Dec08Dec09Dec10Dec11Dec12
netmargin 0.000.000.000.000.00-13.70-3.54-7.59-2.965.26

Zipcar Inc Quarterly Data

Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12
netmargin -4.59-2.03-12.41-9.040.966.14-5.15-0.605.5219.56
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