Net margin
How much of every euro of revenue is left as profit.
Net margin is net profit divided by revenue, expressed as a percentage. It says how much of each euro of turnover actually remains.
Compare only within the same industry. A supermarket runs on a few per cent and that is normal; a software company on the same margin is doing badly.
This ratio can only be calculated for companies that file an income statement — in the Netherlands, a minority.
Related terms