Net Profit Margin
Net margin = net income / revenue.
Higher margins generally mean stronger pricing power or cost structure, but margins vary widely by industry.
Key Takeaways
- Compare metrics over multiple periods to identify trends.
- Always consider industry context when evaluating numbers.
- Combine with other metrics for a complete picture.
Quick Reference
Category
Financials
Difficulty
Intermediate
Reading Time
1 min
Related Terms
Financial Statements
Core reports that show profitability, balance sheet strength...
Income Statement
A report of revenue, expenses, and profit over a period (qua...
Balance Sheet
A snapshot of assets, liabilities, and equity at a point in...
Cash Flow Statement
Tracks cash generated and used by operations, investing, and...
Revenue
The total sales a company earns during a period.
Learn More
Where You'll See This
These appear in the Income Statement section on stock detail pages.