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Electro Rent Corp  (NAS:ELRC) Net Margin %: 2.55% (As of Feb. 2016)

Net margin is calculated as Net Income divided by its Revenue. Electro Rent Corp's Net Income for the three months ended in Feb. 2016 was $1.0 Mil. Electro Rent Corp's Revenue for the three months ended in Feb. 2016 was $39.5 Mil. Therefore, Electro Rent Corp's net margin for the quarter that ended in Feb. 2016 was 2.55%.



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.

Electro Rent Corp Annual Data

May06 May07 May08 May09 May10 May11 May12 May13 May14 May15
Net Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.39 10.37 9.15 8.46 6.48

Electro Rent Corp Quarterly Data

May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16
Net Margin % 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 4.30 5.70 4.63 5.06 2.55

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Electro Rent Corp's Net Margin for the fiscal year that ended in May. 2015 is calculated as

Net Margin=Net Income (A: May. 2015 )/Revenue (A: May. 2015 )
=15.432/238.329
=6.48 %

Electro Rent Corp's Net Margin for the quarter that ended in Feb. 2016 is calculated as

Net Margin=Net Income (Q: Feb. 2016 )/Revenue (Q: Feb. 2016 )
=1.009/39.498
=2.55 %

* 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.


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