Alight(Alit) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for ALIT

Report - net profit margin

This chart shows the historical trend of net profit margin for ALIT compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Net Profit Margin

Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.

Interpretation:
• In '2020', ALIT's net profit margin was -3.8%, measuring the overall profitability of the company. Industry average for Business Services in '2020' stood at -3.8%.
• In '2022', ALIT's net profit margin was -2.8%, measuring the overall profitability of the company. The increase since '2020' reflects strengthening financial performance. Industry average for Business Services in '2022' stood at -39.9%. Industry average declined by 36.1% from previous year.
• In '2023', ALIT's net profit margin was -14.5%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Business Services in '2023' stood at -17.9%. Industry average increased by 22.0% compared to previous year.
• In '2024', ALIT's net profit margin was -6.7%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Business Services in '2024' stood at -22.1%. Industry average declined by 4.2% from previous year.
Overall, ALIT's net profit margin has been volatile but showed a downward trend over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

Good Range: Ranges 5%-20% for many industries.