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GuruFocus has detected 4 Warning Signs with Sherwin-Williams Co $SHW.
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Sherwin-Williams Co (NYSE:SHW)
Net Margin %
8.66% (As of Mar. 2017)

Net margin is calculated as net income divided by its revenue. Sherwin-Williams Co's net income for the three months ended in Mar. 2017 was $239 Mil. Sherwin-Williams Co's revenue for the three months ended in Mar. 2017 was $2,761 Mil. Therefore, Sherwin-Williams Co's net margin for the quarter that ended in Mar. 2017 was 8.66%.

SHW' s Net Margin % Range Over the Past 10 Years
Min: 5.04   Max: 9.55
Current: 10.02

5.04
9.55
SHW's Net Margin % is ranked higher than
73% of the 1063 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 5.22 vs. SHW: 10.02 )

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.

Sherwin-Williams 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 )
=1132.703/11855.602
=9.55 %

Sherwin-Williams 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 )
=239.152/2761.387
=8.66 %

* 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.

Sherwin-Williams Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
netmargin 7.695.986.145.955.046.627.397.789.299.55

Sherwin-Williams Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
netmargin 5.175.3611.1711.887.606.4111.7411.797.308.66
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