Net profit margin is the share of revenue a company keeps as profit after all costs — operating expenses, interest, taxes and one-offs. It answers: out of every dollar of sales, how much actually becomes bottom-line profit? It's a core measure of overall profitability.
Net Profit Margin = Net Income / Revenue × 100%
A higher margin means the company keeps more of each sale as profit, often signalling pricing power or cost control. "Good" margins differ by industry: software can exceed 20–30%, while grocery retail runs on low single digits. Track the trend over time, not just the level.
A company with $200 million in revenue and $24 million in net income has a net margin of 24 / 200 = 12%. Twelve cents of every sales dollar ends up as profit.
Fin Screener shows net profit margin for each stock and lets you screen by it, helping you find consistently profitable companies and spot margin trends.
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