What does NM mean in ACCOUNTING
Net Margin (NM) is a financial ratio that measures the profitability of a company after accounting for all costs related to doing business. It is calculated by dividing net income by total revenue and expressed as a percentage. NM tells investors how well a company is managing its money versus its competition and whether it's generating more or less profit than before.
NM meaning in Accounting in Business
NM mostly used in an acronym Accounting in Category Business that means Net Margin
Shorthand: NM,
Full Form: Net Margin
For more information of "Net Margin", see the section below.
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Essential Questions and Answers on Net Margin in "BUSINESS»ACCOUNTING"
What is Net Margin?
NetMargin (NM) is a financial ratio that measures the profitability of a company after accounting for all costs related to doing business. It is calculated by dividing net income by total revenue and expressed as a percentage.
Why should investors be interested in NM?
Investors should be interested in NM because it can provide insight into how well a company is managing its money versus its competition and whether it's generating more or less profit than before.
What does NM tell us about profitability?
NM tells us how profitable a company is relative to its peers and if it has increased or decreased from previous years.
What's an acceptable level of NM?
An acceptable level of NM will vary depending on the industry and maturity of the company, however, anything above 10-15% is generally considered good.
Final Words:
Understanding what Net Margin can tell you about your business will help you make informed decisions when deciding where to put your resources and investments. With careful analysis, you can better understand your current position compared to competitors in the marketplace and also help develop strategies for greater success in the future.
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