Financial Glossary

Net Margin

Profitability

What is Net Margin?

Net income divided by revenue, expressed as a percentage. The proportion of revenue that becomes profit after all expenses.

Why Net Margin matters

Shows overall profitability. Comparing net margins across peers reveals which companies are most efficient at converting revenue to profit.

Related terms in Profitability

Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.