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Accounting & Reporting

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

Where this is taught

Definitions are the trailer. These free levels turn Net Profit Margin into something you play — one bite-size lesson, with worked examples, a quiz and XP.

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