Net Margin

Net margin, also known as net profit margin, is a key financial metric used to assess the profitability of a business. It represents the percentage of revenue that remains as profit after accounting for all expenses, including operating costs, taxes, interest, and depreciation. Net margin is a critical indicator of a company's financial health and efficiency in converting sales into profit.

Understanding Net Margin:

Net margin is calculated by dividing net profit by total revenue and multiplying by 100 to express it as a percentage. It measures the portion of revenue that translates into profit after deducting all expenses. A higher net margin indicates better profitability and efficiency in managing costs.