Net Profit Margin

Net profit margin is a financial metric that shows how much profit a company makes from its total sales after all expenses, taxes, and costs are deducted. It is expressed as a percentage of revenue. For example, a 10% net profit margin means that for every dollar earned from sales, the company retains ten cents as profit. This measure helps evaluate the company's overall profitability and efficiency in managing expenses relative to its sales. A higher net profit margin indicates better profitability and cost control.