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“I have earned $442,991 USD in just six months by building a dropshipping business that people loved”.
Build your dropshipping and e-commerce knowledge, term by term, and understand key metrics for success.
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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.
