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', ITT's net profit margin was 11.4%, measuring the overall profitability of the company. Industry average for Fluid Controls in '2021' stood at 9.8%.
• In '2022', ITT's net profit margin was 12.3%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Fluid Controls in '2022' stood at 9.6%. Industry average declined by 0.2% from previous year.
• In '2023', ITT's net profit margin was 12.5%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Fluid Controls in '2023' stood at 8.9%. Industry average declined by 0.7% from previous year.
• In '2024', ITT's net profit margin was 14.3%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Fluid Controls in '2024' stood at 10.8%. Industry average increased by 1.9% compared to previous year.
Overall, ITT's net profit margin has steadily improved over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

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