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 '2021', ETD's net profit margin was 8.8%, measuring the overall profitability of the company. Industry average for Home Furnishings in '2021' stood at -10.2%.
• In '2022', ETD's net profit margin was 12.6%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Home Furnishings in '2022' stood at -5.4%. Industry average increased by 4.8% compared to previous year.
• In '2023', ETD's net profit margin was 13.4%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Home Furnishings in '2023' stood at -2.8%. Industry average increased by 2.6% compared to previous year.
• In '2024', ETD's net profit margin was 9.9%, measuring the overall profitability of the company. The decline from '2023' may indicate some operational or financial challenges. Industry average for Home Furnishings in '2024' stood at -3.5%. Industry average declined by 0.7% from previous year.
Overall, ETD's net profit margin has been volatile but generally stable over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

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