the Net margin, also Return on sales or net return on sales, is one of the most meaningful key figures for assessing the overall profitability of a company. It indicates what percentage of sales after deducting all costs and expenses, including interest and taxes, remains as net profit (profit for the year). The formula is as follows: (Net income / sales revenue) * 100. A net margin of 5 %, for example, means that 5 cents of every euro of sales remain in the company as profit. It is a measure of the efficiency of the company as a whole and shows how well the management is able to control costs at all levels and run the business profitably. In contrast to the gross margin or EBIT margin, it also takes into account the effects of the financing structure and the tax burden. The values required for the calculation are determined as part of the Financial statements in SAP Business One determined. For a detailed analysis of profitability and the simulation of scenarios, advanced controlling tools such as the Versino Financial Suite Extensive reporting options.
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