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Net Margin

Alpha Finance Academy

Net Margin

Alpha Finance Academy

Formula

Net Margin =
Net Income Total Revenue
× 100
  • Net Income = Total earnings after all expenses, interest, taxes, and other costs are deducted from revenue.
  • Total Revenue = Total income generated from the company's core business operations.
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Current Value TTM

Net Income
Total Revenue
Net Margin

Net Margin Drivers —

Table

Year Net Margin

Definition

Net Margin represents the percentage of revenue a company keeps as profit after covering all expenses — including COGS, operating costs, interest, and taxes. A higher margin reflects greater efficiency and profitability. What qualifies as a "good" margin depends on the industry — software and technology companies often achieve margins of 20–30%, while grocery or retail businesses typically operate at 2–5% due to high operating costs. A negative net margin means the company is losing money.

Strong≥ 20%
Healthy10 – 20%
Moderate0 – 10%
Loss< 0%
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