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GuruFocus has detected 4 Warning Signs with Level 3 Communications Inc $LVLT.
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Level 3 Communications Inc (NYSE:LVLT)
Net Margin %
4.64% (As of Mar. 2017)

Net margin is calculated as net income divided by its revenue. Level 3 Communications Inc's net income for the three months ended in Mar. 2017 was $95 Mil. Level 3 Communications Inc's revenue for the three months ended in Mar. 2017 was $2,048 Mil. Therefore, Level 3 Communications Inc's net margin for the quarter that ended in Mar. 2017 was 4.64%.

LVLT' s Net Margin % Range Over the Past 10 Years
Min: -26.1   Max: 41.72
Current: 7.8

-26.1
41.72
LVLT's Net Margin % is ranked higher than
68% of the 469 Companies
in the Global Telecom Services industry.

( Industry Median: 3.48 vs. LVLT: 7.80 )

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.

Level 3 Communications Inc'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 )
=677/8172
=8.28 %

Level 3 Communications Inc'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 )
=95/2048
=4.64 %

* 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.

Level 3 Communications Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
netmargin -26.10-7.39-16.43-17.32-17.45-6.62-1.734.6341.728.28

Level 3 Communications Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
netmargin 3.455.94-0.630.05161.866.247.257.0312.304.64
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