Net margin: Net margin tells us the percentage of its gross sales revenue the firm
was able to retain after all expenses are deducted. Net margin is calculated by dividing net income or loss by net sales revenue. Net margin sums up in one number how
successful a company has been at the business of making a profit on each dollar of
sales revenues. Net margin also tells us something about the efficiency of the firm
by measuring the percentage of sales revenue it is able to retain after all expenses
are deducted from gross revenues, and within a single industry can be used to
measure the relative efficiency of competing firms. Net margin takes into account
many non-operating expenses such as interest and stock compensation plans.