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What is net margin?



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Hello Sir,

Through this video , I was not able to know what is Net margin. IS it the Operating expenses ..Kindly explain ?

1 Answer(s)


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Hi, Net Margin = Revenue - Cost of Goods Sold - Operating Expenses

Net margin is the final profit of the company that goes to the shareholders. When you say a company is in profit or loss you are talking about the net margin.

Operating Expenses are all the expenses like salary, marketing, rent, travel etc that are needed to run the business. If your operating expenses are more than your revenue then your company will be in loss.

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