What is Net Profit Margin?
Share of revenue remaining after all expenses and taxes.
How to calculate it
Calculate Net Profit Margin as: Net income / Revenue × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
$1M revenue and $100k net income -> 10% net margin.
Example 2
A company earns $150k net income on $1.5M revenue -> 10% net margin, in line with healthy sector norms after a one-off legal cost is excluded.
Why it matters
Net profit margin is the share of revenue remaining after all expenses and taxes and is the bottom-line measure of overall profitability. It captures the combined effect of pricing, cost control, financing and tax efficiency in one figure. One-time items can distort it, so it should be read alongside operating margin for a cleaner view of the core business.
Benchmark context
10%+ is considered healthy in many sectors, though software can run far higher and high-volume retail far lower; benchmark against peers.
Common pitfalls
One-time items distort comparability.
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