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Keurig Green Mountain Inc  (NAS:GMCR) Net Income: $468 Mil (TTM As of Dec. 2015)

Net Income is the net profit that a company earns after deducting all costs and losses including cost of goods, SGA, DDA, interest expenses, non-recurring items and tax. Keurig Green Mountain Inc's net income for the three months ended in Dec. 2015 was $104 Mil. Its net income for the trailing twelve months (TTM) ended in Dec. 2015 was $468 Mil.

Net Income is linked to the most popular Earnings per Share (Diluted) number. Keurig Green Mountain Inc's Earnings per Share (Diluted) for the three months ended in Dec. 2015 was $0.69.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Keurig Green Mountain Inc Annual Data

Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15
Net Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 199.50 362.63 483.23 596.52 498.28

Keurig Green Mountain Inc Quarterly Data

Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
Net Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 134.58 155.48 113.62 94.60 104.50

Calculation

Net Income is the net profit that a company earns after deducting all costs and losses including cost of goods, SGA, DDA, interest expenses, non-recurring items and tax.

Net Income
= Revenue - Cost of Goods Sold - Selling, General, & Admin. Expense - Research & Development - Depreciation, Depletion and Amortization - Interest Expense - Non-Recurring Items (NRI) - Tax Expense + Others
= - Depreciation, Depletion and Amortization - Interest Expense - Non-Recurring Items (NRI) - Tax Expense + Others
= Operating Income - Interest Expense - Non-Recurring Items (NRI) - Tax Expense + Others
= Pre-Tax Income - Tax Expense + Others

Keurig Green Mountain Inc's Net Income for the fiscal year that ended in Sep. 2015 is calculated as

Net Income(A: Sep. 2015 )
= Pre-Tax Income + Tax Provision + Other Income (Expense) + Net Income (Discontinued Operations)
=750.576+-251.948+-12.966+0
=486

Keurig Green Mountain Inc's Net Income for the quarter that ended in Dec. 2015 is calculated as

Net Income(Q: Dec. 2015 )
= Pre-Tax Income + Tax Provision + Other Income (Expense) + Net Income (Discontinued Operations)
=158.932+-54.435+0.363+0
=105

Net Income for the trailing twelve months (TTM) ended in Dec. 2015 was 155.479 (Mar. 2015 ) + 113.621 (Jun. 2015 ) + 94.596 (Sep. 2015 ) + 104.497 (Dec. 2015 ) = $468 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Net income is the most widely cited number in reporting a company's profitability. It is linked to the most popular earnings-per-share (EPS) number through:

Keurig Green Mountain Inc's Earnings per Share (Diluted) (EPS) for the quarter that ended in Dec. 2015 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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.

EPS is most useful for companies that have:

A predictable business
Consistent accounting methods
And few restructurings

The dividend paid to preferred stocks needs to be subtracted from the total net income in the calculation of EPS because common stock holders are not entitled to that part of the net income.


Be Aware

Warren Buffett looks for consistency and upward long term trend. Because of share repurchase it is possible for net earnings trend to differ from EPS trend. He preferred net income over EPS. The companies with durable competitive advantage companies report higher % net earnings to total revenues.

Important: If a company is showing net earnings history greater than 20% on total revenues, it is probably benefiting from a long term competitive advantage.

If net earnings is less than 10%, likely to be in a highly competitive business.


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