Net Margin

Definition

The percentage of revenue that becomes actual profit after all expenses—the number investors actually care about because it's the bottom line (literally).

Example Usage

Despite having impressive gross margins, our net margin was only 2% because we were spending like a Fortune 500 company.

Origin

Derived from 'net profit' concept in early 20th-century business analysis

Fun Fact

Many successful companies operate at razor-thin net margins; Amazon famously prioritized growth over profit for years.

Source: Standard accounting practice

Related Terms

Beginner

payment

The transfer of money or value in exchange for goods, services, or to settle a debt—capitalism's way of saying "we're square now." It can be cash, check, digital transfer, or any other method that moves value from Point A to Point B. In legal and business contexts, failure to make payment on time is how friendly relationships turn into lawsuits.

💰 Finance / Accounting

Intermediate

deposited

To place valuables, documents, or funds into safekeeping with another party, often as collateral or for storage—the formal way of saying 'I'm leaving this with you and I expect it back.'

💰 Finance / Accounting

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financial

The catch-all adjective for anything involving money, debts, or spreadsheets. If it makes accountants nervous or requires a calculator, it's probably financial.

💰 Finance / Accounting

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financier

A money wizard who plays with billions instead of wands, orchestrating deals and capital flows with the confidence of someone who's never worried about a late mortgage payment. They're essentially professional poker players with better suits.

💰 Finance / Accounting

Intermediate

incorporation

The legal process of transforming your side hustle into a business that can be sued independently of you—or the boring term for mixing stuff together. In finance, it's the moment your liability shield gets its first dent.

💰 Finance / Accounting

Advanced

Consolidated Financial Statements

Combining financial results from a parent company and all its subsidiaries into one statement—to hide where the actual problems are located.

💰 Finance / Accounting

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