Gross Margin vs Net Margin Explained (Made Simple for NGX Investors)
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Gross Margin vs Net Margin Explained (Made Simple for NGX Investors)
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About this listen
Many investors celebrate revenue growth.
But smart investors ask a better question:
How much of that revenue did the company actually keep?
In this episode of The Nigerian Investor Podcast, Mudi and Aye break down one of the most misunderstood areas of financial statements — margins.
We explain:
What gross margin really means
How operating margin shows business efficiency
Why net margin is the true bottom line
The difference between profit (₦) and margin (%)
Why you must compare companies within the same industry
How to analyze NGX company results properly
Using a simple smoothie business example, we walk you step-by-step through how companies convert revenue into real profit.
Next time you see results from companies like Guaranty Trust Holding Company Plc, MTN Nigeria Communications Plc, or Presco Plc, you’ll know exactly what to look for.
🎧 This episode is perfect for:
Beginner investors
NGX retail investors
Anyone learning to read financial statements
Homework:
Download financial statements of two companies in the same sector — for example:
Fidson Healthcare Plc
May & Baker Nigeria Plc
Compare their margins and see which is more efficient.
Until next time…
Stay consistent. Stay curious. Stay invested.