Net Profit divided by Net revenues, often expressed as a percentage. This number is an indication of how effective a company is at cost control. The higher the Net profit Margin is, the more effective the company is at converting revenue into actual profit. The Net profit Margin is a good way of comparing companies in the same Industry, since such companies are generally subject to similar business conditions. However, the Net profit margins are also a good way to to compare companies in different industries in Order to gauge which industries are relatively more profitable. also called Net margin.
