Net Profit Margin

Net income as a percentage of revenue — what's left after every expense including interest, taxes, and one-off items.

Net Profit Margin — Net income as a percentage of revenue — what's left after every expense including interest, taxes, and one-off items.

Key facts

Category
Profitability
Definition
Net income as a percentage of revenue — what's left after every expense including interest, taxes, and one-off items.
Formula
Net Margin = Net Income / Revenue × 100
Live example
/research/stock/AAPL
Last updated
2026-06-17

Formula

Net Margin = Net Income / Revenue × 100

Worked example

Apple: $400B revenue, $100B net income → 25% net margin. Walmart: $600B revenue, $15B net income → 2.5% net margin.

Interpretive bands

< 5%
Low-margin retail and distribution.
10 – 20%
Profitable industrials and consumer-cyclical.
> 20%
Software, biotech, top-tier brand businesses.

How IndexAlpha uses Net Profit Margin

The bottom-line summary metric on the Profitability card. Compare to peers, watch the trend.

See it live

The Net Profit Margin metric shows up on every IndexAlpha research page. See it now on AAPL — or research any stock to view its Net Profit Margin.

Related terms

Common questions

What is Net Profit Margin?

Net income as a percentage of revenue — what's left after every expense including interest, taxes, and one-off items.

How is Net Profit Margin calculated?

Net Margin = Net Income / Revenue × 100. Apple: $400B revenue, $100B net income → 25% net margin. Walmart: $600B revenue, $15B net income → 2.5% net margin.

How does IndexAlpha use Net Profit Margin?

The bottom-line summary metric on the Profitability card. Compare to peers, watch the trend.

Sources