Net profit margin is the percentage of revenue that remains as profit after all expenses — cost of goods sold, operating expenses, interest, taxes, and all other charges. It is the bottom-line profitability measure, dividing net income by revenue. A 15% net margin means the company keeps 15 cents of every dollar of revenue as profit.
Net Profit Margin = Net Income (TTM) / Revenue (TTM)
GeminIQ divides TTM net income by TTM revenue, both from SEC filings.
A: Software: 20-35%. Financials: 20-35%. Consumer staples: 8-15%. Retail: 2-5%. Margins below 5% are considered thin and leave little room for error. The most meaningful comparison is against direct industry peers.
A: Interest expense (from debt), income taxes, and non-operating items (like gains/losses on investments) separate operating margin from net margin. A company with high leverage will have a significantly lower net margin than operating margin because interest expense is a large charge.
A: Net income definitions can vary — some platforms use income from continuing operations, others use total net income including discontinued operations and extraordinary items. GeminIQ uses the total Net Income figure from the filing.
Now put it to work. Screen every US public company by Net Profit Margin.
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