MARKETS / GLOSSARY / NET MARGIN

Net margin

How many cents of each dollar billed survive to the bottom line. It is the clearest single measure of whether a business model converts activity into profit.

Definition

How it is computed here

Formulanet income ÷ revenue
UnitRatio (shown as %)
PeriodOne fiscal year, as reported
SourceExtracted from SEC filings; every value on an asset page carries the accounting tag and the filing it came from
Identifiermargem_liquida
The limit

What this number does not tell you

Margin is meaningless across industries. A supermarket earning 2% and a software company earning 30% are not comparable — the supermarket turns its capital over many times a year and the software company does not. Compare margins inside an industry, or not at all.

Every metric on this site is published with its blind spot stated. A figure without its limit is half a fact.

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In the data

Highest reported net margin

From the most recent fiscal year of each company.

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