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GuruFocus has detected 6 Warning Signs with Procter & Gamble Co $PG.
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Procter & Gamble Co (NYSE:PG)
Net Margin %
16.16% (As of Mar. 2017)

Net margin is calculated as net income divided by its revenue. Procter & Gamble Co's net income for the three months ended in Mar. 2017 was $2,522 Mil. Procter & Gamble Co's revenue for the three months ended in Mar. 2017 was $15,605 Mil. Therefore, Procter & Gamble Co's net margin for the quarter that ended in Mar. 2017 was 16.16%.

PG' s Net Margin % Range Over the Past 10 Years
Min: 9.95   Max: 23.14
Current: 23.14

9.95
23.14
PG's Net Margin % is ranked higher than
94% of the 1619 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.98 vs. PG: 23.14 )

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.

Procter & Gamble Co's Net Margin for the fiscal year that ended in Jun. 2016 is calculated as

Net Margin=Net Income (A: Jun. 2016 )/Revenue (A: Jun. 2016 )
=10508/65299
=16.09 %

Procter & Gamble 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 )
=2522/15605
=16.16 %

* 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.

Procter & Gamble Co Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
netmargin 13.5214.7717.5216.1314.5513.1214.1215.659.9516.09

Procter & Gamble Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
netmargin 12.8312.723.1515.7418.9517.4512.1216.4346.7216.16
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