Net Margin
Net margin is a financial metric that measures the profitability of a business after all expenses have been paid. It is calculated by subtracting all expenses from total revenue and dividing the result by total revenue. The resulting figure is expressed as a percentage and is often referred to as the net profit margin or net margin ratio. Net margin is a key indicator of a company’s financial health and is used to compare the profitability of different businesses.
History of Net Margin
Net margin has been used as a measure of profitability since the early days of accounting. It was first used to compare the profitability of different businesses and to assess the financial health of a company. Over time, it has become an important metric for investors and analysts to evaluate a company’s performance. Net margin is also used to compare the profitability of different industries and to compare the performance of a company over time.
Net Margin Table
| Company | Net Margin (%) |
|---|---|
| Company A | 5.2 |
| Company B | 7.1 |
| Company C | 3.4 |
Summary
Net margin is an important financial metric that measures the profitability of a business after all expenses have been paid. It is used to compare the profitability of different businesses and to assess the financial health of a company. For more information about net margin, investors and analysts can visit websites such as Investopedia, The Balance, and Yahoo Finance.
See Also
- Gross Margin
- Operating Margin
- Return on Assets (ROA)
- Return on Equity (ROE)
- Earnings Per Share (EPS)
- Price-to-Earnings Ratio (P/E Ratio)
- Debt-to-Equity Ratio (D/E Ratio)
- Cash Flow
- Working Capital
- Revenue Growth
