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 '2022', TGT's net profit margin was 6.6%, measuring the overall profitability of the company. Industry average for Department/Specialty Retail Stores in '2022' stood at 5.8%.
• In '2023', TGT's net profit margin was 2.5%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Department/Specialty Retail Stores in '2023' stood at 5.6%. Industry average declined by 0.2% from previous year.
• In '2024', TGT's net profit margin was 3.9%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Department/Specialty Retail Stores in '2024' stood at 4.4%. Industry average declined by 1.2% from previous year.
• In '2025', TGT's net profit margin was 3.8%, measuring the overall profitability of the company. The decline from '2024' may indicate some operational or financial challenges. Industry average for Department/Specialty Retail Stores in '2025' stood at 2.5%. Industry average declined by 1.9% from previous year.
Overall, TGT's net profit margin has been volatile but showed a downward trend over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

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