net profit margin definition - MARKETS
A firm’s net profit margin is a key indicator of its profitability. Analyzing it can tell potential investors whether the business may be a good bet. Net profit margin is a key financial metric that measures the percentage of revenue left as profit after all expenses are deducted.
Understanding the Context
Investors and businesses can use the net profit margin to assess a ... A company's operating margin is the profit it makes on a dollar of sales after accounting for the direct costs involved in earning the revenue. What’s a good profit margin for your business? There’s a quick answer to this question.
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Key Insights
A good profit margin is usually 10% or higher for most businesses, though this varies significantly by industry. Profit margin conveys the relative profitability of a firm or business activity by accounting for the costs involved in producing and selling goods. Margins can be computed from gross profit, ...