What is Net Profit Margin?
Net Profit Margin is the percentage of revenue that ends up as net income after every expense is subtracted — including interest, taxes, and one-time items. It's the broadest profitability lens but can be distorted by tax strategies, leverage, and accounting changes.
Formula
Net Profit Margin = Net Income ÷ Revenue
How TopTier Strategy uses Net Profit Margin
We track net margin alongside operating margin in the Profitability pillar to catch below-the-line distortions like tax-rate changes.
Related Glossary Terms
Other concepts in the Profitability pillar.
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