Medifast(Med) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for MED

Report - net profit margin

This chart shows the historical trend of net profit margin for MED 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', MED's net profit margin was 10.8%, measuring the overall profitability of the company. Industry average for Packaged Foods in '2021' stood at -10.6%.
• In '2022', MED's net profit margin was 9.0%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Packaged Foods in '2022' stood at -18.9%. Industry average declined by 8.4% from previous year.
• In '2023', MED's net profit margin was 9.3%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Packaged Foods in '2023' stood at -12.2%. Industry average increased by 6.8% compared to previous year.
• In '2024', MED's net profit margin was 0.4%, measuring the overall profitability of the company. The decline from '2023' may indicate some operational or financial challenges. Industry average for Packaged Foods in '2024' stood at -11.7%. Industry average increased by 0.5% compared to previous year.
Overall, MED'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.