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GuruFocus has detected 5 Warning Signs with Esterline Technologies Corp $ESL.
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Esterline Technologies Corp (NYSE:ESL)
Net Margin %
6.90% (As of Mar. 2017)

Net margin is calculated as net income divided by its revenue. Esterline Technologies Corp's net income for the three months ended in Mar. 2017 was $35 Mil. Esterline Technologies Corp's revenue for the three months ended in Mar. 2017 was $509 Mil. Therefore, Esterline Technologies Corp's net margin for the quarter that ended in Mar. 2017 was 6.90%.

ESL' s Net Margin % Range Over the Past 10 Years
Min: 3.36   Max: 9.3
Current: 6.56

3.36
9.3
ESL's Net Margin % is ranked higher than
62% of the 190 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 3.57 vs. ESL: 6.56 )

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.

Esterline Technologies Corp's Net Margin for the fiscal year that ended in Sep. 2016 is calculated as

Net Margin=Net Income (A: Sep. 2016 )/Revenue (A: Sep. 2016 )
=101.685/1992.631
=5.10 %

Esterline Technologies Corp's Net Margin for the quarter that ended in Mar. 2017 is calculated as

Net Margin=Net Income (Q: Mar. 2017 )/Revenue (Q: Mar. 2017 )
=35.113/509.182
=6.90 %

* 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.

Esterline Technologies Corp Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Sep15Sep16
netmargin 7.658.138.519.307.745.998.724.993.365.10

Esterline Technologies Corp Quarterly Data

Jan15Apr15Jul15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
netmargin 1.863.965.740.901.153.055.689.613.546.90
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