Net margin trend (NM trend 5Y)
The average annual change in net margin, in percentage points, across the last five filed years.
It shows whether profitability is widening or being competed away.
How it is computed here
(Latest net margin - oldest net margin) / number of years, in percentage points
Computed across several filed fiscal years. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- An endpoint-to-endpoint line, blind to what happened between.
- One-off items in either endpoint year distort the whole trend.
Questions
How is net margin trend calculated?
(Latest net margin - oldest net margin) / number of years, in percentage points. Computed across several filed fiscal years.
What does net margin trend tell a value investor?
It shows whether profitability is widening or being competed away.
When does net margin trend mislead?
An endpoint-to-endpoint line, blind to what happened between. One-off items in either endpoint year distort the whole trend.