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', GWW's net profit margin was 8.0%, measuring the overall profitability of the company. Industry average for Office Equipment/Supplies/Services in '2021' stood at -2.3%.
• In '2022', GWW's net profit margin was 10.2%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Office Equipment/Supplies/Services in '2022' stood at -2.2%. Industry average increased by 0.2% compared to previous year.
• In '2023', GWW's net profit margin was 11.1%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Office Equipment/Supplies/Services in '2023' stood at -6.3%. Industry average declined by 4.2% from previous year.
• In '2024', GWW's net profit margin was 11.1%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Office Equipment/Supplies/Services in '2024' stood at 0.7%. Industry average increased by 7.0% compared to previous year.
Overall, GWW's net profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

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