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', XYL's net profit margin was 8.2%, measuring the overall profitability of the company. Industry average for Fluid Controls in '2021' stood at 9.8%.
• In '2022', XYL's net profit margin was 6.4%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Fluid Controls in '2022' stood at 9.6%. Industry average declined by 0.2% from previous year.
• In '2023', XYL's net profit margin was 8.3%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Fluid Controls in '2023' stood at 8.9%. Industry average declined by 0.7% from previous year.
• In '2024', XYL's net profit margin was 10.4%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Fluid Controls in '2024' stood at 10.8%. Industry average increased by 1.9% compared to previous year.
Overall, XYL'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.