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', REE's net profit margin was -8422166.7%, measuring the overall profitability of the company. Industry average for Auto Manufacturing in '2021' stood at -17.4%.
• In '2023', REE's net profit margin was -7102.5%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Auto Manufacturing in '2023' stood at -139.4%. Industry average declined by 122.0% from previous year.
• In '2024', REE's net profit margin was -61067.8%, measuring the overall profitability of the company. The decline from '2023' may indicate some operational or financial challenges. Industry average for Auto Manufacturing in '2024' stood at -59.9%. Industry average increased by 79.5% compared to previous year.
Overall, REE's net profit margin has been volatile but showed an upward trend over the past 3 years.

Formula: Net Profit Margin = Net Income / Revenue

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