Net Profit Margin
Also called: net margin, bottom line margin, profit margin
Net profit margin is net income as a percentage of revenue — what actually survives after every cost, interest and tax. It's the headline profitability number and the least comparable one, since it embeds capital structure, tax rates and one-off items. In DuPont analysis it's one of three levers on return on equity, alongside asset turnover and leverage.
Formula
Net profit margin = Net income ÷ Revenue
Want more than a definition? Learn it in Capital Quarters →