Glossary

Net profit margin is a profitability ratio that measures the percentage of revenue and other income left after subtracting all costs for the business, including costs of goods sold, operating expenses, interest, and taxes. Net profit margin differs from gross profit margin as a measure of profitability for the business in general, taking into account not only the cost of goods sold but all other related expenses.

Source: https://online.hbs.edu/Documents/managers-guide-to-finance-and-accounting.pdf