What is Net Margin in Retail? Explained

Net Margin is the percentage of revenue representing a company's net profit after deducting all expenses in the retail industry. It is a key profitability metric, calculated by dividing the net profit (total revenue minus expenses) by total revenue and multiplying by 100. A higher net margin reflects efficient cost management and higher earnings relative to revenue. Monitoring net margin is crucial for assessing the financial health and performance of a retail business.