Spotify Technology S.A. Ordinary Shares(Spot) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios
Company Report for SPOT
Report - net profit margin
This chart shows the historical trend of net profit margin for SPOT compared to its industry average over the recent years.
Ratio Definition and Interpretation
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', SPOT's net profit margin was -0.4%, measuring the overall profitability of the company. Industry average for Broadcasting in '2021' stood at 4.6%.
• In '2022', SPOT's net profit margin was -3.7%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Broadcasting in '2022' stood at 14.4%. Industry average increased by 9.8% compared to previous year.
• In '2023', SPOT's net profit margin was -4.0%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Broadcasting in '2023' stood at -5.2%. Industry average declined by 19.6% from previous year.
• In '2024', SPOT's net profit margin was 7.3%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Broadcasting in '2024' stood at -5.5%. Industry average declined by 0.3% from previous year.
Overall, SPOT'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.