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', ROOT's net profit margin was -150.9%, measuring the overall profitability of the company. Industry average for Property-Casualty Insurers in '2021' stood at -5.2%.
• In '2022', ROOT's net profit margin was -95.8%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Property-Casualty Insurers in '2022' stood at 7.3%. Industry average increased by 12.5% compared to previous year.
• In '2023', ROOT's net profit margin was -32.4%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Property-Casualty Insurers in '2023' stood at 15.9%. Industry average increased by 8.6% compared to previous year.
• In '2024', ROOT's net profit margin was 2.6%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Property-Casualty Insurers in '2024' stood at 1.5%. Industry average declined by 14.4% from previous year.
Overall, ROOT'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.