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JPMorgan Chase & Co (NYSE:JPM)
Profitability Rank
6 (As of Mar. 2014)

JPMorgan Chase & Co has the Profitability Rank of 6.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

• 1. Operating Margin
• 2. Piotroski F-Score
• 3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
• 4. Consistency of the profitability
• 5. Predictability Rank

JPMorgan Chase & Co's operating margin for the quarter that ended in Mar. 2014 was 32.65%. As of today, JPMorgan Chase & Co's Piotroski F-Score is 4.


Definition

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

JPMorgan Chase & Co has the Profitability Rank of 6.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

•1. Operating Margin

Operating Margin - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

JPMorgan Chase & Co's Operating Margin for the quarter that ended in Mar. 2014 is calculated as:

Operating Margin=Operating Income (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=7507 / 22993
=32.65 %

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

•2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

JPMorgan Chase & Co has an F-score of 4 indicating the company's financial situation is typical for a stable company.

•3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

JPMorgan Chase & Co operating margin is expanding. Margin expansion is usually a good sign.

•4. Consistency of the profitability

•5. Predictability Rank


Related Terms

Financial Strength Rank, Operating Margin, Piotroski F-Score

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