Annual Net Profit Margin
Net Profit Margin is a ratio showing a company’s net profit as a percentage of revenue, calculated as: Net Profit Margin = (Net Profit / Revenue) × 100. Net profit is revenue minus cost of goods, operating costs, other expenses, interest, and taxes. Expressed as a percentage, it allows comparison of financial health across firms. A higher margin signals efficient strategies and a robust business model, while a lower one may highlight cost or revenue issues. Companies use it to evaluate performance and guide strategic decisions.
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