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Net Profit Margin
Valuation & Fundamentals
Net income, what remains after interest, taxes and every other expense, as a percentage of revenue.
It shows how many dollars out of every $100 of sales are left for shareholders. One-time gains or charges can inflate or depress it for a single period, so looking at several quarters together gives a truer picture.
Example
A company with revenue of $100 million and net income of $10 million has a net profit margin of 10%.
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