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', PAM's net profit margin was 18.1%, measuring the overall profitability of the company. Industry average for Electric Utilities: Central in '2021' stood at 6.6%.
• In '2022', PAM's net profit margin was 24.9%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2022' stood at 8.1%. Industry average increased by 1.5% compared to previous year.
• In '2023', PAM's net profit margin was 17.4%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Electric Utilities: Central in '2023' stood at -22.6%. Industry average declined by 30.8% from previous year.
• In '2024', PAM's net profit margin was 33.0%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2024' stood at -0.3%. Industry average increased by 22.4% compared to previous year.
Overall, PAM'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.