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GuruFocus has detected 5 Warning Signs with Brown-Forman Corp $BF.B.
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Brown-Forman Corp (NYSE:BF.B)
Net Margin %
20.86% (As of Apr. 2017)

Net margin is calculated as net income divided by its revenue. Brown-Forman Corp's net income for the three months ended in Apr. 2017 was $145 Mil. Brown-Forman Corp's revenue for the three months ended in Apr. 2017 was $695 Mil. Therefore, Brown-Forman Corp's net margin for the quarter that ended in Apr. 2017 was 20.86%.

BF.B' s Net Margin % Range Over the Past 10 Years
Min: 17.04   Max: 34.54
Current: 22.31

17.04
34.54
BF.B's Net Margin % is ranked higher than
89% of the 218 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 5.79 vs. BF.B: 22.31 )

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.

Brown-Forman Corp's Net Margin for the fiscal year that ended in Apr. 2017 is calculated as

Net Margin=Net Income (A: Apr. 2017 )/Revenue (A: Apr. 2017 )
=669/2994
=22.34 %

Brown-Forman Corp's Net Margin for the quarter that ended in Apr. 2017 is calculated as

Net Margin=Net Income (Q: Apr. 2017 )/Revenue (Q: Apr. 2017 )
=145/695
=20.86 %

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

Brown-Forman Corp Annual Data

Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16Apr17
netmargin 17.0417.5318.1922.1218.8420.7422.0321.8334.5422.34

Brown-Forman Corp Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
netmargin 22.8819.0822.3223.4223.4971.6021.7923.7322.5220.86
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