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', WSM's net profit margin was 13.7%, measuring the overall profitability of the company. Industry average for Home Furnishings in '2022' stood at -5.4%.
• In '2023', WSM's net profit margin was 13.0%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Home Furnishings in '2023' stood at -2.8%. Industry average increased by 2.6% compared to previous year.
• In '2024', WSM's net profit margin was 12.2%, measuring the overall profitability of the company. The decline from '2023' may indicate some operational or financial challenges. Industry average for Home Furnishings in '2024' stood at -3.5%. Industry average declined by 0.7% from previous year.
• In '2025', WSM's net profit margin was 14.6%, measuring the overall profitability of the company. The increase since '2024' reflects strengthening financial performance. Industry average for Home Furnishings in '2025' stood at 8.4%. Industry average increased by 11.9% compared to previous year.
Overall, WSM's net profit margin has remained generally stable over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

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