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', ORLY's net profit margin was 16.2%, measuring the overall profitability of the company. Industry average for Auto & Home Supply Stores in '2021' stood at 8.1%.
• In '2022', ORLY's net profit margin was 15.1%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Auto & Home Supply Stores in '2022' stood at 8.5%. Industry average increased by 0.4% compared to previous year.
• In '2023', ORLY's net profit margin was 14.8%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Auto & Home Supply Stores in '2023' stood at 5.2%. Industry average declined by 3.3% from previous year.
• In '2024', ORLY's net profit margin was 14.3%, measuring the overall profitability of the company. The decline from '2023' may indicate some operational or financial challenges. Industry average for Auto & Home Supply Stores in '2024' stood at 3.2%. Industry average declined by 1.9% from previous year.
Overall, ORLY's net profit margin has remained generally stable over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

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