Finance glossary
Net Profit Margin
Definition
Net income as a percentage of revenue.
Net profit margin is the bottom-line measure of profitability, showing how many cents of profit remain from each dollar of revenue after all expenses, interest, and taxes. It enables comparison across companies, though capital structure and tax rates affect it.
In a sentence
After all costs and taxes, the company kept just 6 cents on the dollar, a 6% net profit margin.
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