Net Profit Margin is a financial metric that shows how much profit a company makes for every dollar of revenue it generates. It is calculated by dividing Net Profit by Total Revenue and is expressed as a percentage. A higher net profit margin indicates a more profitable company, as it retains more money from its sales after covering all expenses. This metric is useful for comparing the profitability of companies within the same industry. Investors and analysts often look at Net Profit Margin to assess a company's financial health and operational efficiency, helping them make informed decisions about investments.