Metric
Net Margin
Bottom-line profit as a share of revenue.
Formula
Net Income ÷ Revenue
Definition
Net margin is what remains from every dollar of revenue after all expenses, interest, and taxes. It's the most commonly cited profitability measure.
Why it matters
A useful comparison point across peers, but sensitive to one-off items, tax changes, and leverage decisions. Pair it with operating and FCF margins for a fuller picture.
Building blocks
- Net Income
- Final profit left after all costs, interest, and taxes.
- Revenue
- Total money earned from selling products or services.
Educational information only, not investment advice. Turtleway helps you understand what a metric or concept means; it does not tell you what to buy or sell.