# Net Margin

Net income as a percentage of revenue.

## Definition

Net margin shows what fraction of revenue ultimately becomes profit available to shareholders, after every cost — operating, financing, and tax — is subtracted.

## Formula

(Net Income ÷ Revenue) × 100

## Why it matters

Net margin captures the full economics of the business. A company with high gross margin but low net margin is being eaten alive by either operating expenses, interest costs, or taxes — each of which deserves separate diagnosis.

## How Standard Equity uses it

Shown in the main table for every company type.

## The metric

| Category | Margins |
| -------- | ------- |
| Unit     | %       |

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