Business Pitch Dictionary by pitch.dog
Revenue, costs & profit · Core

Net margin

Also called: profit margin, net profit margin

ELI5

Net income divided by revenue.

Used in conversation

“The number is useful only if everyone calculates net margin the same way.”

Pitch context

You will see “Net margin” in financial models, budgets, board packs and investor materials when the discussion reaches revenue, costs & profit.

Why it matters: In revenue, costs & profit, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

  • MarginThe search label “profit margin” can route to both entries.
Sources & evidence · 4

Direct term-level sources and supporting source families.