Effective margin

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Effective margin (EM)

Used with SAT performance measures, the amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.

Effective Margin

The profit margin produced from an asset if one assumes financing at a certain interest rate. That is, one calculates potential profits as if income remains constant but cost of funds varies. See also: Effective yield.
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Higher operating expenses for the year, which were related mainly to internal growth initiatives, acquisitions, business process improvements and vehicle fuel cost increases, were offset by effective margin management, higher other income and productivity improvements in field operations.
Record warm weather this spring and higher propane product costs during the quarter were somewhat offset by effective margin management and slightly lower operating expenses.
In Portugal, significant growth in operating results was achieved due to higher sales and effective margin and cost control.

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