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', SAH's net profit margin was 2.8%, measuring the overall profitability of the company. Industry average for Retail-Auto Dealers and Gas Stations in '2021' stood at 2.6%.
• In '2022', SAH's net profit margin was 0.6%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Retail-Auto Dealers and Gas Stations in '2022' stood at -1.3%. Industry average declined by 3.9% from previous year.
• In '2023', SAH's net profit margin was 1.2%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Retail-Auto Dealers and Gas Stations in '2023' stood at -7.9%. Industry average declined by 6.6% from previous year.
• In '2024', SAH's net profit margin was 1.5%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Retail-Auto Dealers and Gas Stations in '2024' stood at -1.7%. Industry average increased by 6.2% compared to previous year.
Overall, SAH's net profit margin has been volatile but generally stable over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

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