NET MARGIN | |||||||||
Definition | |||||||||
Net income / Net sales (in%) | |||||||||
Comment | |||||||||
This ratio is an indication of how effective the company is at cost control. The higher the net margin, the more effective the company is at turning sales into profit. This varies from industry to industry. Net profit margin is an integral part of Return On Equity (ROE). | |||||||||
Reference | |||||||||
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