Profit Margin (Historical)

Returns the historical net profit margin for a company. This measures the percentage of revenue that becomes net income.

Formula

Profit Margin = Net Income / Revenue

Parameters

Parameter Required Description
Symbol Yes Stock ticker symbol
Year Yes Fiscal year or period code
Quarter No Quarter 1-4
TTM No "TTM" for trailing twelve months

Return Value

  • Returns as decimal (0.25 = 25%)
  • Higher margins indicate better profitability

Examples

=hf_Profit_Margin("AAPL", 2023, 4)
Q4 2023 net margin
=hf_Profit_Margin("MSFT", "ly")
Last year margin
=hf_Profit_Margin("GOOGL", 2023, , "TTM")
TTM profit margin
=hf_Profit_Margin("AAPL", 2023)*100
Convert to percentage

When to Use

  • Profitability analysis
  • Industry comparisons
  • DuPont ROE analysis
  • Margin trend tracking

When NOT to Use

Scenario Use Instead
Gross margin hf_Gross_Margin()
Operating margin hf_Operating_Margin()
Net income amount hf_Net_Income()

Common Issues & FAQ

Q: Why is the value less than 1? A: Margins are returned as decimals. Multiply by 100 for percentage.

Q: Why might profit margin be negative? A: Net loss results in negative profit margin.

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