Definition
Net margin absorbs COGS, marketing, salaries, tools and overhead. It is the scoreboard beneath all scoreboard metrics: growth celebrated while net margin erodes was rented, not built.
Why it matters
Tracking net margin monthly alongside growth metrics keeps ambition tethered to economics - vanity and sanity in one chart.
Formula
Net profit / Revenue
Benchmarks
Varies by model; trend matters more than absolute
All glossary terms