Net profit margin is a financial metric that assesses a company’s profitability by determining the percentage of revenue that remains as net profit after all expenses have been deducted. It is calculated by dividing net profit by total revenue and multiplying by 100. A higher net profit margin indicates a more profitable and efficient company, as it retains more profit from each dollar of sales. This metric is crucial for investors and stakeholders to evaluate a company’s financial health and operational efficiency.