Profitability
What is Net Profit Margin?
Net profit margin is the percentage of revenue that becomes actual profit after ALL expenses, taxes, interest, depreciation, and everything else.
Formula
Net Profit Margin = Net Income Γ· Revenue Γ 100
How to Interpret
The bottom line efficiency metric. Rising net margins over time signal improving business quality.
Typical Ranges
US sectors: Software 20β30%, Pharma 18β28%, Banks 20β30%, Consumer Staples 8β15%, Retail 2β6%. Or international markets like India: IT 15β25%, Banking 15β25%, FMCG 10β20%, Manufacturing 5β15%.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Net Profit Margin.