Net Margin
Net profit margin
In one sentenceThe percentage of revenue that ends up as profit after every cost, interest and tax.
What it means
Net margin is the bottom-line efficiency of the whole business. Healthy levels vary a lot by industry.
How to use it
- Track it monthly. If revenue grows but net margin shrinks, costs are growing faster than sales.
FormulaNet margin = net profit ÷ revenue × 100%
Related terms
Gross Margin Revenue vs Profit EBITDA
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