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.

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