Definition

Net margin

Net income as a share of revenue — the bottom line after every cost: operations, interest, taxes, and one-offs. It is the margin the income statement ends on, and the profitability input to DuPont ROE analysis.

Formula

Net margin = Net income ÷ Revenue

Drivers — what actually moves it

Operating margin: the operating engine underneath the bottom line.
Interest: net interest expense from the debt load sits between operating and pre-tax income.
Tax rate: the effective rate can move on jurisdiction mix, credits, and one-time items.
One-offs: gains/losses on sales, impairments, and legal settlements can dominate a single year.

Where to find it in the filing

Income statement (Consolidated Statements of Operations). 10-K Item 8 — the final 'net income' line.

XBRL concepts Echelon grounds to: NetIncomeLoss

Sector caveats — where this breaks

For REITs, net income understates distributable cash because of large non-cash depreciation — the industry reads FFO alongside it.

Drill it in a live lesson Operating margin DuPont analysis Diluted EPS

Educational use only — not investment advice. Figures come from public SEC filings; Echelon teaches you to analyze data, it never recommends buying or selling any security.