net margin


Definition
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.


Related Personal Finance Articles

Loading...

net margin in the news

Loading...

Enter your email address to get our free Term of the Day newsletter!

net margin is ...

... part of the Accounting and Investor Relations subjects.

Search volume for net margin

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z