Net margin

Share of revenue left as profit after everything, including interest, tax and one-offs.

Worked example · a round-number company

Net income$500M÷Revenue$5.0B=Net margin10.0%

How to read it

↑Higher is better. Expect it below operating margin: interest and tax come out after.

Keep in mind

  • One-off gains, write-downs and tax changes move it more than operating margin.

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