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Zoltek Companies, Inc. (NAS:ZOLT)
Net Margin
-6.45% (As of Dec. 2013)

Net margin is calculated as net income divided by its revenue. Zoltek Companies, Inc.'s net income for the three months ended in Dec. 2013 was \$-2.3 Mil. Zoltek Companies, Inc.'s revenue for the three months ended in Dec. 2013 was \$35.1 Mil. Therefore, Zoltek Companies, Inc.'s net margin for the quarter that ended in Dec. 2013 was -6.45%.

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.

Zoltek Companies, Inc.'s Net Margin for the fiscal year that ended in Sep. 2013 is calculated as

 Net Margin = Net Income (A: Sep. 2013 ) / Revenue (A: Sep. 2013 ) = 5.236 / 140.451 = 3.73 %

Zoltek Companies, Inc.'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 ) = -2.264 / 35.123 = -6.45 %

* 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.

Zoltek Companies, Inc. Annual Data

 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 netmargin -66.06 -72.94 -71.25 -1.67 4.01 -3.03 -4.93 -2.36 12.26 3.73

Zoltek Companies, Inc. Quarterly Data

 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 netmargin 10.56 20.62 7.10 11.58 9.60 8.30 9.93 -2.96 -0.37 -6.45
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