Explain what is net margin?

hi binny
can you please explain me net margin with example?it was not clear to me in video

1 Answer(s)


Net margin is the same as net income. Thats the final final mony left pver in the company after paying of all your expenses. That is the absolute measure of the profitability of your company.

Lets say you run a restaurant business and get Rs.1 lac in revenue. With that revenue you have to pay the salary, rent, electricity bills, cost of ingredients etc. The money left over after all these expenses is the net income.