Glossary/Cash Flow & Income Statement

Čistá marže

Net Margin · Net Profit Margin

The percentage of revenue left as net profit after paying all costs, interest, and taxes.

Čistá marže = Čistý zisk / Tržby × 100 %
Cash Flow & Income Statement

What it is

Net Margin = Net Income / Revenue × 100%

It is the "bottom line" of profitability — how many cents the company keeps from every dollar earned after paying absolutely everything: production, wages, marketing, interest on debt, and taxes.

Typical net margin ranges by sector:

  • Software / SaaS: 15–35%
  • Technology (hardware): 10–25%
  • Consumer goods: 5–15%
  • Retail / Trade: 1–5%
  • Manufacturing: 3–8%

Why track it

Net margin shows the overall profitability of the business. Monitor the trend — a rising margin alongside rising revenue signals operating leverage. A falling margin alongside rising revenue may signal pricing pressure, mix-shift toward less profitable products, or rising costs.

Be careful when comparing margins across different sectors — a retailer with a 3% net margin can be an excellent business; a SaaS company with a 3% net margin most likely is not.

Real-world example

Comparison (FY2025):

  • Microsoft: net margin ~35%
  • Apple: net margin ~25%
  • Amazon: net margin ~5%
  • Walmart: net margin ~2.5%

Amazon looks "barely profitable" versus Microsoft — but these are entirely different business models with different capital structures.

Watch out for

Net margin can be temporarily inflated by one-time gains (asset sales, tax credits). Always monitor margin adjusted for non-recurring items (adjusted net margin).