PDSnet Glossary

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Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

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Definition

This is the ratio of net income to revenue in a company. Obviously, you want this "margin" to be as high as possible. Clearly, you dont want to see this margin declining over time in the shares that you want to buy. The margin can come under pressure because of stiff competition or because of some unusual expenses which the company has incurred. Net income is important because ultimately this is where your dividends will come from.

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