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', WTRG's net profit margin was 23.0%, measuring the overall profitability of the company. Industry average for Water Supply in '2021' stood at 25.9%.
• In '2022', WTRG's net profit margin was 20.3%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Water Supply in '2022' stood at 19.4%. Industry average declined by 6.6% from previous year.
• In '2023', WTRG's net profit margin was 24.3%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Water Supply in '2023' stood at 19.5%. Industry average increased by 0.1% compared to previous year.
• In '2024', WTRG's net profit margin was 28.5%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Water Supply in '2024' stood at -27.0%. Industry average declined by 46.5% from previous year.
Overall, WTRG'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.