ELI5: Explain Like I'm 5

net profit margin

Net Profit Margin is like a score that helps you understand how well a company is doing. It measures how much money the company is making compared to how much money it has spent. To get the net profit margin score, you divide the company's profits (money it has left after all its costs are paid) by its total revenue (all the money the company made). The score is usually given as a percentage, so if the net profit margin is 10%, that means the company made 10 cents of profit for every dollar of revenue it made.