Understanding Net Margin: Key Metrics for Analyzing Business Profitability and Efficiency

Introduction

This report delves into the concept of net margin, an essential financial metric that gauges a company’s profitability and operational efficiency. Net margin, calculated as net income divided by total revenue, is a critical indicator for stakeholders, including investors, management, and analysts, as it reflects the percentage of revenue that remains as profit after all expenses are accounted for. The purpose of this