Net Margin

Net Profit Margin
Business

Net margin is the percentage of revenue left as pure profit after every cost, including interest and taxes, has been subtracted.

Net margin is the bottom line, literally — the last profitability figure on the income statement. It's the most complete profitability measure but also the most affected by one-off items (a lawsuit settlement, a tax credit, a debt refinancing) that can make a single quarter's net margin misleading about the underlying business trend.

Net Margin

Net Margin = (Net Profit ÷ Revenue) × 100