Of every dollar of revenue — how much is left as profit from the actual business, before interest and taxes? 15% means: $100 in revenue produces $15 of profit from day-to-day operations.
Rule of thumb:
MoatLens tip: This says more about the quality of a business than net profit, because it ignores financing and tax manoeuvres — you see the business itself. Two companies with identical net profit can be worlds apart: one earns well from operations and pays interest; the other barely earns and is rescued by one-off items.
In MoatLens this explanation sits right next to the number — one tap away. And you see the ten-year trend instead of a single value.
