Net margin
The share of revenue that survives all the way down to net profit.
Formula
Trailing twelve-month profit over revenue for the same period. Stored as a fraction.
How to read the number
Margin shows how protected a business is from competition: where margins are high and stay high for years, there is usually a barrier to entry.
When the metric lies
Where it is used
The metric is calculated across every security in the catalogue and appears on the instrument card, in the multiples table and in the screener.
Also known as: net margin, profit margin