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GuruFocus has detected 8 Warning Signs with Coca-Cola Co $KO.
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Coca-Cola Co (NYSE:KO)
Net Margin %
12.96% (As of Mar. 2017)

Net margin is calculated as net income divided by its revenue. Coca-Cola Co's net income for the three months ended in Mar. 2017 was $1,182 Mil. Coca-Cola Co's revenue for the three months ended in Mar. 2017 was $9,118 Mil. Therefore, Coca-Cola Co's net margin for the quarter that ended in Mar. 2017 was 12.96%.

KO' s Net Margin % Range Over the Past 10 Years
Min: 15.3   Max: 33.56
Current: 15.3

15.3
33.56
KO's Net Margin % is ranked higher than
90% of the 97 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 5.55 vs. KO: 15.30 )

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.

Coca-Cola 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 )
=6527/41863
=15.59 %

Coca-Cola 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 )
=1182/9118
=12.96 %

* 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.

Coca-Cola Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
netmargin 20.7318.1822.0233.5618.4418.7818.3215.4316.6015.59

Coca-Cola Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
netmargin 7.0814.5425.5712.6812.3714.4229.889.845.8512.96
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