net margin


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Related to net margin: Net profit margin, Return on equity, Operating margin

Profit Margin

A measure of how well a company controls its costs. It is calculated by dividing a company's profit by its revenues and expressing the result as a percentage. The higher the profit margin is, the better the company is thought to control costs. Investors use the profit margin to compare companies in the same industry and well as between industries to determine which are the most profitable.

net margin

Net margin.

A company's net margin, typically expressed as a percentage, is its net profit divided by its net sales. Net profit and net sales are the amounts the company has left after subtracting relevant expenses from gross profits and gross sales.

The higher the percentage, the more profitable the company is. Fundamental analysts use net margin, sometimes called net profit margin, as a way to assess how effective the company is in converting income to profit.

In general, a higher net margin is the result of an appropriate pricing structure and effective cost controls.

net margin

see NET PROFIT.
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References in periodicals archive ?
For the spring sown crop, the average financial performance was worse, with a negative net margin of -pounds 51 per hectare, compared to pounds 304 10 years ago.
WALLDORF, Germany, July 11, 2012 /PRNewswire/ -- SAP AG(NYSE: SAP) today announced the availability of the SAP Net Margin Analysis analytic application to bring enterprises the most complete financial view of their business-to-business (B2B) operations.
Net income for the quarter was $25mn, resulting in a net margin of 24%, in line with our expectation of an average net margin of 23% for 2010.
As in 2003/4, the top-third flocks of both types produced significantly higher lamb outputs at lower costs than average enterprises to generate pounds 24-25 a head higher net margins, excluding subsidies.
While interest expense went up for most of the largest agriculture cooperatives, net margins seemed to increase more.
In complete contrast, top third performing businesses increased their average net margin by nearly pounds 1/head ( from pounds 8.
2 million in net margin in the distribution segment; * Increased operating income in the gathering and processing segment, driven by increases in commodity prices and gross processing margins; * Increased operating income in the energy services segment due to increased natural gas basis differentials and higher margins in wholesale physical marketing; * Sales of the company's oil and natural gas production assets and Texas gathering and processing assets; * First full-year equity income of $10.
Brazil's Low-fare, Low-cost Airline Reports Record Net Margin Net Income Increase of 45%; Raises 2005 Guidance
The ranking, which appeared in the May 26, 2003 edition of Footwear News, ranks the top footwear vendors by net margin, or net income as a percent of net revenues, for the full year 2002.