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GuruFocus has detected 3 Warning Signs with Goodyear Tire & Rubber Co $GT.
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Goodyear Tire & Rubber Co (NAS:GT)
Net Margin %
4.49% (As of Mar. 2017)

Net margin is calculated as net income divided by its revenue. Goodyear Tire & Rubber Co's net income for the three months ended in Mar. 2017 was $166 Mil. Goodyear Tire & Rubber Co's revenue for the three months ended in Mar. 2017 was $3,699 Mil. Therefore, Goodyear Tire & Rubber Co's net margin for the quarter that ended in Mar. 2017 was 4.49%.

GT' s Net Margin % Range Over the Past 10 Years
Min: -2.3   Max: 13.52
Current: 8.22

-2.3
13.52
GT's Net Margin % is ranked higher than
77% of the 1285 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 3.99 vs. GT: 8.22 )

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.

Goodyear Tire & Rubber Co'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 )
=1264/15158
=8.34 %

Goodyear Tire & Rubber Co'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 )
=166/3699
=4.49 %

* 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.

Goodyear Tire & Rubber Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
netmargin 3.06-0.40-2.30-1.151.511.013.2213.521.878.34

Goodyear Tire & Rubber Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
netmargin 48.885.574.606.48-9.354.995.218.2415.004.49
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