Value Line(Valu) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for VALU

Report - net profit margin

This chart shows the historical trend of net profit margin for VALU 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', VALU's net profit margin was 57.6%, measuring the overall profitability of the company. Industry average for Investment Managers in '2021' stood at 76.4%.
• In '2022', VALU's net profit margin was 58.8%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Investment Managers in '2022' stood at 69.9%. Industry average declined by 6.6% from previous year.
• In '2023', VALU's net profit margin was 45.5%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Investment Managers in '2023' stood at 66.1%. Industry average declined by 3.8% from previous year.
• In '2024', VALU's net profit margin was 50.7%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Investment Managers in '2024' stood at 73.2%. Industry average increased by 7.1% compared to previous year.
Overall, VALU's net profit margin has consistently declined during the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

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