net margin

Net margin is a financial metric that shows how much profit a company keeps from its total revenue after covering all expenses, taxes, and costs. It is expressed as a percentage. For example, if a company earns $1,000 in revenue and has $100 in profit after all expenses, the net margin is 10%. A higher net margin indicates better efficiency and profitability, meaning the company retains more profit from each dollar it earns. It helps investors and managers assess how effectively the company is managing its costs and generating profit.