Dados B3 › Glossary

Glossary

Net margin

Of each real sold, how much ends up as profit after all costs, interest and taxes.

What it is

Of each real sold, how much ends up as profit after all costs, interest and taxes. Shown on the stocks pages.

How Dados B3 calculates it

consolidated net income (includes the minority shareholders' share) ÷ net revenue. ROE uses another basis, profit to controlling shareholders only; both choices are deliberate and declared.

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Net income of R$ 100 million and revenue of R$ 1 billion: net margin = 10%.

What to watch for when reading it

• One-off profit (asset sale, accounting gain) distorts the year's margin.
• The 12-month card uses the sum of the last four quarters for both profit and revenue.

See also

• Gross margin
• EBIT margin (operating margin)
• ROE (return on equity)

Methodology · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.