Margins & Ratios

What is Net Margin?

The share of revenue that ends up as net income.

How it is calculated

Net income divided by revenue.

How to read it

Affected by interest and tax as well as operations, so operating margin is usually the cleaner comparison.

Where the numbers come from

Scrutar computes Net Margin from the figures each company reports to the SEC in its annual and quarterly filings, using the XBRL data attached to those filings.

More Margins & Ratios metrics

Gross MarginThe share of each dollar of revenue left after the direct cost of what was sold.How to read it →Operating MarginThe share of revenue that becomes operating profit after all running costs.How to read it →Return on EquityProfit earned for each dollar of shareholder equity.How to read it →Return on AssetsProfit earned for each dollar of assets the company controls.How to read it →Current RatioWhether near-term assets cover near-term obligations.How to read it →Debt/EquityHow much the company relies on money owed to others, lenders and suppliers alike, relative to shareholder money.How to read it →Quick RatioWhether the company can cover its near-term bills without selling inventory.How to read it →Asset TurnoverHow much revenue each dollar of assets generates.How to read it →

See it for a real company

Ten years of Net Margin and every other metric on this page, for every company Scrutar covers, computed from SEC filings.

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