InvestorWords.com

Net profit divided by net revenues, often expressed as a percentage. This number is an indication of how effective a company is at cost control. The higher the net margin is, the more effective the company is at converting revenue into actual profit. The net margin is a good way of comparing companies in the same industry, since such companies are generally subject to similar business conditions. However, the net margins are also a good way to to compare companies in different industries in order to gauge which industries are relatively more profitable. also called net profit margin.

• What Does It Mean To Corner The Market?
• AMEX, NASDAQ, OTC and Other Exchanges
• Mutual Funds and Your Portfolio
• Finding the Right Financial Advisor For You
• What Is a Capital Gain and What Does It Mean For My Taxes?
• Tax Issues Related to Your Business

Featured Advertiser