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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.