Glossary

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.