Normative margin (See Chapter 10 of the Vernimmen) Normative margin is an operating margin of x% that a given company in a given sector should achieve. This concept is based on financial theory, which states that in each sector profitability should be commensurate with the sector’s risks and that sooner or later, normative margins will be achieved, even though adjustments may take some considerable time. Normative margin gives rise to normalised earnings. Normative margin (See Chapter 10 of the Vernimmen) Normative margin is an operating margin of x% that a given company in a given sector should achieve. This concept is based on financial theory, which states that in each sector profitability should be commensurate with the sector’s risks and that sooner or later, normative margins will be achieved, even though adjustments may take some considerable time. Normative margin gives rise to normalised earnings. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Normative margin" :

NASDAQ NAV NBV NOPAT NOPAT multiple NPV NWP NYSE Natural disaster risks Natural hedge Negative capital employed Negative covenant Negative working capital Net Book Value Net Written Premium Net asset value Net asset value of a fund, NAV

Net assets Net assets per share Net debt Net financial debt Net financial expense/income Net fixed assets Net income Net pension costs Net present value Net profit Net worth Net worth test Netting New equity puzzle Nominal rate Nominal value Nominee agreement

Non core-assets Non investment grade, non-investment grade Non recurrent items Non recurring items Non-monetary items Non-operating assets Non-operating working capital Non-recourse discounting Non-voting shares Normalised cash flow Normalised earnings Normative analysis Normative cash flow Normative margin Notes to the accounts Notional amount Notional pooling