Net Profit Margin
since 2005
Calculation
EMC Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to EMC Corporation1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 8.06% | = | 100 | × | 1,990) | ÷ | 24,704) |
| Dec 31, 2014 | 11.10% | = | 100 | × | 2,714) | ÷ | 24,440) |
| Dec 31, 2013 | 12.44% | = | 100 | × | 2,889) | ÷ | 23,222) |
| Dec 31, 2012 | 12.58% | = | 100 | × | 2,733) | ÷ | 21,714) |
| Dec 31, 2011 | 12.30% | = | 100 | × | 2,461) | ÷ | 20,008) |
| Dec 31, 2010 | 11.17% | = | 100 | × | 1,900) | ÷ | 17,015) |
| Dec 31, 2009 | 7.76% | = | 100 | × | 1,088) | ÷ | 14,026) |
| Dec 31, 2008 | 9.05% | = | 100 | × | 1,346) | ÷ | 14,876) |
| Dec 31, 2007 | 12.59% | = | 100 | × | 1,666) | ÷ | 13,230) |
| Dec 31, 2006 | 10.97% | = | 100 | × | 1,224) | ÷ | 11,155) |
| Dec 31, 2005 | 11.73% | = | 100 | × | 1,133) | ÷ | 9,664) |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
An analysis of the financial performance from 2005 to 2015 reveals a consistent expansion in top-line revenue accompanied by fluctuating net profit margins, suggesting that bottom-line growth did not always scale linearly with revenue increases.
- Revenue Growth Trends
- Revenues demonstrated a sustained upward trajectory throughout the analyzed period, growing from US$ 9,664 million in 2005 to US$ 24,704 million in 2015. This reflects a significant and steady increase in the scale of operations over the eleven-year span.
- Net Profit Margin Volatility
- The net profit margin exhibited notable instability, characterized by a significant contraction between 2008 and 2009, where the margin declined from 9.05% to a period low of 7.76%. This decline occurred despite a general increase in revenues during the same timeframe, indicating a temporary compression of profitability.
- Recovery and Peak Performance
- A recovery phase was observed from 2010 to 2013. During this interval, the net profit margin returned to double digits, peaking at 12.58% in 2012. Net income reached its highest point in 2013 at US$ 2,889 million, maintaining a margin of 12.44%.
- Recent Profitability Erosion
- A downward trend in profitability emerged in the final two years of the period. While revenues continued to grow, reaching US$ 24,704 million in 2015, the net profit margin fell to 8.06%. This divergence suggests that costs grew at a faster rate than revenues toward the end of the period, leading to a reduction in the percentage of revenue converted into net income.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
EMC Corp., net profit margin, long-term trends, comparison to competitors
| EMC Corp. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 8.06% | -16.54% | 20.29% | 14.26% | 19.99% | 20.63% | 13.01% | 12.47% | 11.74% | 17.90% | 13.47% | 20.85% | 22.97% |
| Dec 31, 2014 | 11.10% | -7.32% | 21.97% | 11.82% | 6.16% | 20.95% | 19.89% | 13.72% | 9.26% | 18.61% | 10.65% | 30.08% | 21.63% |
| Dec 31, 2013 | 12.44% | -1.57% | 25.57% | 3.41% | 21.90% | 18.25% | 19.11% | 3.16% | 9.68% | 13.12% | 13.14% | 27.56% | 17.71% |
| Dec 31, 2012 | 12.58% | -21.82% | 24.11% | 1.25% | 23.82% | 20.63% | 23.83% | 6.33% | 18.13% | -12.53% | 14.53% | 31.95% | 13.72% |
| Dec 31, 2011 | 12.30% | 7.48% | 28.98% | 18.31% | 23.63% | 23.97% | 25.02% | 22.35% | 25.03% | 1.90% | 7.14% | 28.48% | 16.28% |
| Dec 31, 2010 | 11.17% | 7.25% | 25.79% | 9.82% | 19.83% | 26.28% | 11.66% | 16.25% | 12.59% | 21.81% | -2.04% | 29.54% | 23.11% |
| Dec 31, 2009 | 7.76% | 5.63% | 12.30% | -6.09% | -2.96% | 12.44% | -34.43% | -27.08% | 4.99% | -38.21% | -0.88% | 15.28% | 14.10% |
| Dec 31, 2008 | 9.05% | -53.34% | 30.44% | 11.82% | — | 14.08% | 14.24% | 17.75% | -3.95% | -27.72% | 19.46% | 28.36% | 15.36% |
| Dec 31, 2007 | 12.59% | -56.19% | 19.52% | 17.57% | — | 18.20% | 19.34% | 26.72% | -0.54% | -5.63% | 14.63% | 37.23% | 19.20% |
| Dec 31, 2006 | 10.97% | -2.94% | 21.35% | 16.54% | — | 14.26% | 18.37% | 20.45% | 19.84% | 7.74% | 12.74% | 32.82% | 30.45% |
| Dec 31, 2005 | 11.73% | 2.83% | 17.36% | 17.30% | — | 22.31% | 22.38% | 19.92% | 11.57% | 3.85% | 4.99% | 37.78% | 17.35% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
EMC Corp., net profit margin, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| EMC Corp. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2015 | 8.06% | 18.27% |
| Dec 31, 2014 | 11.10% | 19.57% |
| Dec 31, 2013 | 12.44% | 17.41% |
| Dec 31, 2012 | 12.58% | 15.96% |
| Dec 31, 2011 | 12.30% | 20.49% |
| Dec 31, 2010 | 11.17% | 21.44% |
| Dec 31, 2009 | 7.76% | 6.08% |
| Dec 31, 2008 | 9.05% | 9.29% |
| Dec 31, 2007 | 12.59% | 13.69% |
| Dec 31, 2006 | 10.97% | 17.71% |
| Dec 31, 2005 | 11.73% | 19.00% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
EMC Corp., net profit margin, long-term trends, comparison to industry (information technology)
| EMC Corp. | Information Technology | |
|---|---|---|
| Dec 31, 2015 | 8.06% | 18.32% |
| Dec 31, 2014 | 11.10% | 19.33% |
| Dec 31, 2013 | 12.44% | 20.15% |
| Dec 31, 2012 | 12.58% | 20.07% |
| Dec 31, 2011 | 12.30% | 20.71% |
| Dec 31, 2010 | 11.17% | 20.19% |
| Dec 31, 2009 | 7.76% | 14.45% |
| Dec 31, 2008 | 9.05% | 15.07% |
| Dec 31, 2007 | 12.59% | 15.71% |
| Dec 31, 2006 | 10.97% | 16.26% |
| Dec 31, 2005 | 11.73% | 16.64% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).