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What Is Net Profit Margin Ratio?

Net Profit Margin

Net Profit Margin ratio tells us how much profit is generated from our sales, specifically the percentage of sales revenue that ends up in profit. Net profit margin is the most important indicator of a company's overall financial health.

This ratio also indicates the amount of revenue you are losing through costs and expenses associated with your business.

Generally, a net profit margin 5% is a low margin, 10% is a healthy margin, and 20% is a high margin, though it depends on the industry and the structure of the business.

Net Profit Margin

Where To Find Data

Net Income- Income Statement or as known as (Profit or loss statement)

Revenue - Income Statement or as known as (Profit or loss statement)

P/E Ratio: P/E Ratio is the price of a company divided by its earnings per share. The multiple of earnings to price is the earnings multiple


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