net margin
Bottom line ratio
Net margin is the percentage of revenue that remains as profit after all expenses are deducted—operating costs, taxes, interest, everything.
It measures how efficiently a company converts sales into actual profit: Their net margin improved to 12% after cutting overhead.
Also called profit margin or net profit margin.
Compare with gross margin, which only subtracts direct production costs.
Essential point or conclusion
- after-tax profitEarnings post-deductions
- earningsMoney gained from work
- EBITDAProfit before major deductions
- financial performanceMonetary success measurement
income statement · P&L · percentage · ratio · markup · surplus · gain · yield
Money spent on things
- overheadLocated directly above
- operating costsRegular expenses for functioning
- cost of goods soldDirect expenses for inventory sold
- variable costsExpenses changing with output
fixed costs · direct costs · indirect costs · cost reduction · cost control · economies of scale · pricing strategy · budgeting
Go back again
- dividendsProfits paid to shareholders
- capital gainsProfit from asset sales
- yieldProduce or relinquish
- equityImpartial treatment or ownership value
portfolio · stocks · securities · asset allocation · diversification · risk management · financial planning · wealth management
bottom line
Essential point or conclusion
- after-tax profitEarnings post-deductions
- earningsMoney gained from work
- EBITDAProfit before major deductions
financial performance · income statement · P&L · percentage · ratio · markup · surplus · gain · yield · break-even
expenses
Money spent on things
- overheadLocated directly above
- operating costsRegular expenses for functioning
- cost of goods soldDirect expenses for inventory sold
variable costs · fixed costs · direct costs · indirect costs · cost reduction · cost control · economies of scale · pricing strategy · budgeting · fiscal discipline
return
Go back again
- dividendsProfits paid to shareholders
- capital gainsProfit from asset sales
- yieldProduce or relinquish
equity · portfolio · stocks · securities · asset allocation · diversification · risk management · financial planning · wealth management · shareholder value
- marginsborder, edge, fringe, periphery, gutter
- financial analysisgross profit, profitability, operating profit, EBITDA, ROI
- financial metricsROI, ROE, EPS, P/E ratio, PE ratio
- financialsincome, profit, earnings, gross profit, revenue
- business mathmarkup, markdown, discount, profit, percentage
- business metricsconversion rate, revenue, KPIs, sales figures, ROI
net margingross margin
Profit from direct costs
gross · revenue · top line · gross income · gross revenue
net, margin, nets, netted, netting, margins, marginal, marginally, marginalize