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 ÷ Revenue × 100
How to Interpret
The bottom line efficiency metric. Rising net margins over time signal improving business quality.
Typical Ranges
US sectors: Software 20–30%, Pharma 18–28%, Banks 20–30%, Consumer Staples 8–15%, Retail 2–6%. Or international markets like India: IT 15–25%, Banking 15–25%, FMCG 10–20%, Manufacturing 5–15%.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Net Profit Margin.