AbbVie's net margin

mentor: Gross marginDefinitionGross marginThe share of each revenue dollar left after the direct cost of producing what was sold. It is the first read on pricing power and production efficiency, and the starting point of every margin analysis.Gross margin = Gross profit ÷ Revenue = (Revenue − Cost of revenue) ÷ RevenueDrivers: Price · Cost · Volume · MixFull definition → and operating marginDefinitionOperating marginOperating income as a share of revenue — what remains after both the direct cost of sales and the operating expenses (R&D, sales & marketing, G&A) that run the business. It measures how much of the gross margin survives the cost of operating the company.Operating margin = Operating income ÷ RevenueDrivers: Gross margin · Opex leverage · One-time itemsFull definition → each stop at a chosen line of the income statement. Net marginDefinitionNet marginNet income as a share of revenue — the bottom line after every cost: operations, interest, taxes, and one-offs. It is the margin the income statement ends on, and the profitability input to DuPont ROE analysis.Net margin = Net income ÷ RevenueDrivers: Operating margin · Interest · Tax rate · One-offsFull definition → stops at the last one: it is the share of revenue left after every cost, including interest and tax. It is also the one margin that works for any filer, because some statements report no gross profit line at all.

Below are AbbVie's own figures from its latest annual reportDefinitionForm 10-KThe audited annual report a US public company files with the SEC — the most complete single document about a business: audited financial statements, management's discussion, risk factors, and the auditor's own opinion. It is the primary source nearly every figure on Echelon grounds to.One 10-K = audited statements + MD&A + risk factors + auditor's reportDrivers: Assurance · Cadence · Restated comparativesFull definition → (Form 10-K), pulled from SEC EDGAR. Use them to compute the net marginDefinitionNet marginNet income as a share of revenue — the bottom line after every cost: operations, interest, taxes, and one-offs. It is the margin the income statement ends on, and the profitability input to DuPont ROE analysis.Net margin = Net income ÷ RevenueDrivers: Operating margin · Interest · Tax rate · One-offsFull definition → yourself.

Net marginDefinitionNet marginNet income as a share of revenue — the bottom line after every cost: operations, interest, taxes, and one-offs. It is the margin the income statement ends on, and the profitability input to DuPont ROE analysis.Net margin = Net income ÷ RevenueDrivers: Operating margin · Interest · Tax rate · One-offsFull definition → = net income ÷ revenue.