Net Profit Margin
Profitability RatiosThe percentage of revenue that remains as profit after all expenses, taxes, and costs are deducted.
Formula
Net Profit Margin = Net Income / Total Revenue
Why it matters
Higher margins indicate pricing power and operational efficiency. Tech companies often have 20%+ margins; retail may have 2-5%.
Indian example
Related terms
Learn the concept
Profitability Ratios →From the research
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