Net profit divided by net revenues, often expressed as a percentage. This number is an indication of how effective a company is at cost control. The higher the net margin is, the more effective the company is at converting revenue into actual profit. The net margin is a good way of comparing companies in the same industry, since such companies are generally subject to similar business conditions. However, the net margins are also a good way to to compare companies in different industries in order to gauge which industries are relatively more profitable. also called net profit margin.
Related information about net margin:
- Net Margin Definition | Investopedia
The ratio of net profits to revenues for a company or business segment - typically expressed as a percentage – that shows how much of each dollar earned by ...
- Profit margin - Wikipedia, the free encyclopedia
Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the ...
- Net margin - Wiki | The Motley Fool
For instance, if a company has $1.5 million in net income on sales of $25 million, then the net margin would be $1.5 / $25 = 6%. However, if a different company ...
- Net Margin - Financial Dictionary - The Free Dictionary
A measure of how well a company controls its costs. It is calculated by dividing a company's profit by its revenues and expressing the result as a percentage.
- What is net margin? definition and meaning
Definition of net margin: Net profit divided by net revenues, often expressed as a percentage. This number is an indication of how effective a company is at cost ...
- Net Margin Term Definition & Example | InvestingAnswers
We explain the definition of Net Margin, provide a clear example of how it works and explain why it's an important concept in business, finance & investing.
- Net Profit Margin
Net profit margin is a ratio comparing net profit after taxes to revenue. Investors can calculate the net profit margin by using the income statement.
- Calculating the Net Margin
The net margin tool should be an important component of an asset- ... The definition of net margin is all sources of revenue less the cost of funds and operating ...