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GuruFocus has detected 2 Warning Signs with E*TRADE Financial Corp $ETFC.
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E*TRADE Financial Corp (NAS:ETFC)
Net Margin %
26.22% (As of Mar. 2017)

Net margin is calculated as net income divided by its revenue. E*TRADE Financial Corp's net income for the three months ended in Mar. 2017 was $145 Mil. E*TRADE Financial Corp's revenue for the three months ended in Mar. 2017 was $553 Mil. Therefore, E*TRADE Financial Corp's net margin for the quarter that ended in Mar. 2017 was 26.22%.

ETFC' s Net Margin % Range Over the Past 10 Years
Min: -468.76   Max: 28.44
Current: 26.9

-468.76
28.44
ETFC's Net Margin % is ranked higher than
72% of the 690 Companies
in the Global Capital Markets industry.

( Industry Median: 10.13 vs. ETFC: 26.90 )

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.

E*TRADE Financial Corp's Net Margin for the fiscal year that ended in Dec. 2016 is calculated as

Net Margin=Net Income (A: Dec. 2016 )/Revenue (A: Dec. 2016 )
=552/1941
=28.44 %

E*TRADE Financial 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 )
=145/553
=26.22 %

* 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.

E*TRADE Financial Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
netmargin -468.76-26.58-58.54-1.377.69-6.575.3417.1919.5628.44

E*TRADE Financial Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
netmargin 9.389.0768.07-250.8220.2732.4228.0628.6024.9526.22
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