Net margin (Net mgn)
What is left of each unit of revenue once absolutely everything has been paid.
It is the bottom line as a rate, and the input to return on equity.
How it is computed here
Net income / revenue x 100
Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.
- Most exposed of all the margins to one-off items: disposals, writedowns, tax settlements and legal provisions all land here.
- The stored figure prefers the vendor trailing-twelve-month ratio when one is published, so it can differ from a recompute off the latest annual statements. The source trail shows both.
Questions
How is net margin calculated?
Net income / revenue x 100. Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it.
What does net margin tell a value investor?
It is the bottom line as a rate, and the input to return on equity.
When does net margin mislead?
There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading. Most exposed of all the margins to one-off items: disposals, writedowns, tax settlements and legal provisions all land here. The stored figure prefers the vendor trailing-twelve-month ratio when one is published, so it can differ from a recompute off the latest annual statements. The source trail shows both.