Net margin

What is Net margin?

It represents the net income margin for the requested period and date. This is calculated as Net Income divided by Revenue multiplied by 100.

Formula:

Net income / Revenue * 100%

What does Net margin mean?

Using this parameter, you can evaluate whether a company’s management brings significant profit from its sales, and whether operating and overhead costs are controlled. For example, if a company has growing income, but its operating expenses simultaneously grow faster than income, then its net profit will decrease. The best companies will aim to grow Net margin or keep it steady over time.