Eton Pharmaceuticals(Eton) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios
Company Report for ETON
Report - net profit margin
This chart shows the historical trend of net profit margin for ETON 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 '2021', ETON's net profit margin was -8.9%, measuring the overall profitability of the company. Industry average for Biotechnology: Pharmaceutical Preparations in '2021' stood at -179.2%.
• In '2022', ETON's net profit margin was -42.4%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at -162.3%. Industry average increased by 16.9% compared to previous year.
• In '2023', ETON's net profit margin was -3.0%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at -155.0%. Industry average increased by 7.3% compared to previous year.
• In '2024', ETON's net profit margin was -9.8%, measuring the overall profitability of the company. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at -143.4%. Industry average increased by 11.5% compared to previous year.
Overall, ETON'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.