# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Net Margin

This figure is a measure of profitability.

It is equal to annual net income divided by revenues over the trailing 12 months. The resulting figure is then multiplied by 100. This figure gives a more accurate picture of a company's recent performance than the most-recent annual net margin figure, which may be more than a year old. The company's net income and revenues are found in the income statement of its annual report and recent 10-Qs.

Example: A major retailer's net margin declined from 7.7% to 2.9% over a four year period. Over the trailing 12 months, the company's net margin continued to decline, to 2.5%.

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