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) × 100Related terms