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Glossary · PSX term

Net margin.

Net margin is the percentage of revenue that becomes final net profit after all costs.

Definition

It captures everything, including operating costs, interest, and tax, so it shows overall profitability per rupee of sales. Comparing net margins over time and against peers highlights efficiency and cost trends.

Worked example

A company earning Rs. 8 billion net profit on Rs. 100 billion revenue has an 8% net margin.

Related on PSX Clarity

Term
Gross margin
Term
Operating margin
Term
Income statement
Term
Return on equity

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