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Glossary > Net Mgn % 5y Avg

Net Margin %, 5 Yr Average

What does Net Mgn % 5y Avg mean?

Also known as Return on Sales, this value is the Net Income divided by Sales for the same period and expressed as a percentage.



Stockopedia explains Net Mgn % 5y Avg...

This is one of the best indicators of the company's efficiency because net profit takes into consideration all expenses of the company. Investors want the net profit margin to be as high as possible. Rising margins are seen as a positive signal although high margins do tend to attract the interests of competitors.