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GuruFocus has detected 1 Warning Sign with Novo Nordisk A/S $NVO.
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Novo Nordisk A/S (NYSE:NVO)
Net Margin %
35.70% (As of Mar. 2017)

Net margin is calculated as net income divided by its revenue. Novo Nordisk A/S's net income for the three months ended in Mar. 2017 was $1,460 Mil. Novo Nordisk A/S's revenue for the three months ended in Mar. 2017 was $4,091 Mil. Therefore, Novo Nordisk A/S's net margin for the quarter that ended in Mar. 2017 was 35.70%.

NVO' s Net Margin % Range Over the Past 10 Years
Min: 20.38   Max: 33.93
Current: 34.18

20.38
33.93
NVO's Net Margin % is ranked higher than
94% of the 737 Companies
in the Global Biotechnology industry.

( Industry Median: -79.00 vs. NVO: 34.18 )

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.

Novo Nordisk A/S'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 )
=5377.60195111/15849.9234303
=33.93 %

Novo Nordisk A/S'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 )
=1460.18144437/4090.69342803
=35.70 %

* 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.

Novo Nordisk A/S Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
netmargin 20.3821.1721.0823.7025.7727.4730.1329.8232.3033.93

Novo Nordisk A/S Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
netmargin 26.5639.1930.8331.2928.6034.7536.3035.6029.4235.70
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