Verbull Word of the day
Finance glossary

Net Profit Margin

Valuation · beginner
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.

Play today's puzzle →
Verbull app icon
Get a word like this every morning
Word of the Day on your Home Screen, with quizzes and flashcards. Get the app →