Net Margin

Net Margin is the percentage of revenue a company keeps as profit after paying all its expenses. It's calculated by dividing net income (what's left after taxes and costs) by total revenue, then multiplying by 100. You'll see this metric on most financial websites and earnings reports because it tells you how efficiently a company turns sales into actual profit. A higher net margin means the company is better at controlling costs and keeping money in its pocket. For example, if Company A brings in $100 million in sales but only keeps $15 million as profit, its net margin is 15%—meaning 15 cents of every dollar sold becomes profit. It's a quick way to compare how profitable different companies really are.