Net margin, also known as net profit margin, is a financial metric that measures the profitability of a company by calculating the percentage of revenue that is left after all expenses, including taxes and interest, have been deducted. It is a key indicator of a company’s financial health and efficiency, as it reflects the amount of profit generated from each dollar of sales. A high net margin indicates that a company is able to effectively manage its costs and generate a strong return on investment, while a low net margin may suggest inefficiency or financial challenges. Net margin is often used by investors and analysts to evaluate the overall performance and potential of a company.