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', FANG's net profit margin was 32.3%, measuring the overall profitability of the company. Industry average for Oil & Gas Production in '2021' stood at 18.8%.
• In '2022', FANG's net profit margin was 45.9%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2022' stood at 28.3%. Industry average increased by 9.5% compared to previous year.
• In '2023', FANG's net profit margin was 37.7%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2023' stood at 22.6%. Industry average declined by 5.7% from previous year.
• In '2024', FANG's net profit margin was 30.3%, measuring the overall profitability of the company. The decline from '2023' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2024' stood at -2.6%. Industry average declined by 25.2% from previous year.
Overall, FANG'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.