Net Margin

Net Margin: Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. The ratio of net margin to revenues for a company is typically expressed as a percentage and indicates how much of each dollar earned by the company is retained as profits

Net margin is calculated by finding the net profit as a percentage of revenue or sales:

Net Margin= Net Profit/ Revenue, where Net Profit = Revenue – Total Costs