Profitability & margins
Net profit margin
Beginner
Net margin is net profit (after everything) divided by revenue. Example: Revenue $100, net profit $12 → net margin = 12%. Meaning: it's the ultimate 'bottom line' of profitability. Very industry-dependent: supermarkets often run 2–3%, software firms 20–35%. Only directly comparable within an industry.
Related terms
For educational and informational purposes — not investment advice.
