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.