Equity / Profitability Metric

Net Profit Margin

Definition

A profitability ratio measuring the percentage of revenue that remains as net income after all expenses, taxes, and interest have been deducted.

Formula / Rules
Net Income / Revenue × 100
Example
Net income of $80,000 on $1,000,000 revenue equals 8% net profit margin.
Related Terms
Earnings Per Share (EPS) Gross Profit Margin Operating Margin
Frequently Asked Question
What is Net Profit Margin?
Net Profit Margin measures the percentage of revenue that remains as net income after all expenses. It is the bottom-line profitability indicator for any company.
APA Citation
Clark, R. (2025). Net Profit Margin. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/net-profit-margin
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.