Are net margin and operating income the same?


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Is the net margin = operating income/pbt

And if so , then how can this go to the shareholders . The taxes and interests are not deducted . I feel the PAT goes to shareholders (Correct me if i am wrong).

And when company makes profit , are we talking about operating income /PBT or PAT ?

Thanks.Prativa

1 Answer(s)


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Good questions Prativa.
Net Income is not Operating Income
Net Income / PAT = Operating Income - Interest Expenses - Taxes
When company makes profit you are talking about PAT/Net Income

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