Net Interest Margin

(redirected from Net Interest Yields)

Net Interest Margin

A measure of the return on a company's investments relative to its interest expenses. The net interest margin helps a company determine whether or not it has made wise investment decisions. A negative net interest margin indicates that interest expenses exceed investment returns and that the company therefore has a net negative return. A positive net interest margin indicates the opposite. It is calculated thusly:

Net interest margin = (Investment returns - interest expenses) / Average earning assets.
References in periodicals archive ?
Consequently, Farmer Mac's net interest yield on short-term and floating rate investments was significantly higher than its net interest yields earned on such investments in previous quarters.