Plain-English definitions, reviewed by an independent investor
Net Margin
Net margin is the bottom-line profit left as a percentage of revenue after everything.
Net margin is the bottom-line profit left as a percentage of revenue after everything.
Net Margin = Net Income ÷ Revenue × 100%
Why it matters
It is the final score of how much sales turn into profit.
Common confusion
One-off items can distort it; look at the trend, not a single quarter.
Frequently Asked Questions
Net vs gross margin?
Net is after all costs; gross is before overhead and tax.
What is a good net margin?
Varies widely; compare within the same industry only.