The Net Profit Margin is a profitability ratio calculated as net income divided by revenue, indicating how much of each dollar earned is profit.

Net profit margin helps assess how efficiently a company is managing its expenses relative to its revenue, indicating overall profitability.

Is 30% a good net profit margin? Yes, a 30% net profit margin is considered very good and indicates strong profitability.

Is 20% a good net profit margin? Yes, a 20% net profit margin is generally considered good and reflects healthy profitability.

Is a net profit margin of 7% good? A 7% net profit margin is decent and can be considered good, depending on the industry standards.

Net profit margin provides insight into a company’s profitability, helps compare performance with industry peers, and informs strategic financial decisions.

The net profit margin is a crucial metric for evaluating a company`s profitability, helping businesses understand how much profit they retain from their total revenue.