Transactional Net Margin is a financial metric that measures the profitability of a company's transactions. It is calculated by taking the net profit from transactions and dividing it by the total revenue generated from those transactions. This percentage helps businesses understand how much profit they retain after covering costs associated with sales. A higher Transactional Net Margin indicates better efficiency and profitability, while a lower margin may signal issues with cost management or pricing strategies. Companies often analyze this metric to make informed decisions about pricing, cost control, and overall financial health, ensuring they maximize their profitability.