Post-Tax Profit Margin (Historical)
Returns the historical net profit margin after all expenses and taxes. This is the ultimate measure of profitability - what percentage of revenue becomes net income.
Understanding the Metric
Net profit margin is calculated as:
Net Margin = Net Income / Revenue * 100This metric shows:
- Final profitability after all costs
- How much of each dollar of revenue is profit
- Overall business efficiency
This is the "bottom line" profitability measure.
Parameters
| Parameter | Description |
|---|---|
| Symbol | Stock ticker (e.g., AAPL, MSFT) |
| Year | Fiscal year or period code (lq, ly, lq-1, ly-1, lt, lt-1) |
| Quarter | Optional: 1, 2, 3, or 4 (default: 1) |
| TTM | Optional: "TTM" for trailing twelve months |
Industry Benchmarks
| Sector | Typical Net Margin |
|---|---|
| Software | 15-30% |
| Retail | 2-8% |
| Banking | 20-35% |
| Manufacturing | 5-15% |
Syntax
=hf_Post_Tax_Profit_Margin(Symbol, Year, [Quarter], [TTM])Parameters
Stock ticker symbol
Fiscal year (e.g., 2023) or period code (lq, lq-1, ly, ly-1, lt, lt-1)
Calendar quarter (1-4)
Set to 'TTM' for trailing twelve months
Returns
Historical post-tax (net) profit margin as a percentage
Examples
=hf_Post_Tax_Profit_Margin("AAPL", 2023, 4)=hf_Post_Tax_Profit_Margin("MSFT", "ly")=hf_Post_Tax_Profit_Margin("GOOGL", 2023, , "TTM")=hf_Post_Tax_Profit_Margin(A1, B1, C1)=hf_Post_Tax_Profit_Margin("META", "lq")When to Use
- Evaluating overall company profitability
- Comparing companies in same industry
- Tracking profitability trends
- Assessing business model efficiency
- Calculating return metrics
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Need gross margin | hf_Gross_profit_margin_profit_margin_after_CGS() |
| Need pre-tax margin | hf_Pre_Tax_Profit_Margin() |
| Need normalized margin | hf_Normalized_net_profit_margin() |
| Need EBITDA margin | ebitda_margins() |
Common Issues & FAQ
Why is net margin so much lower than gross margin?
Net margin reflects ALL costs: COGS, operating expenses, interest, and taxes. Gross margin only deducts COGS. The gap shows total operating and financial costs.
What's a good net margin?
It varies widely by industry. Tech companies may have 20-30%+, while retailers might only have 2-5%. Compare to industry peers, not across sectors.
Why might net margin fluctuate?
One-time items (restructuring, asset sales, legal settlements), tax rate changes, interest rate changes, and special charges all impact net margin but may not reflect ongoing business.
Related Formulas
More MarketXLS Historical Fundamentals formulas you can use in the same worksheet:
- Pre Tax Profit Indicator (Historical)
- Pre-Tax Income EBT (Historical)
- Preferred Dividends Income Statement Impact (Historical)
- Preferred Equity Outside Stock Equity (Historical)
- Preferred Securities Of Subsidiary Trust (Historical)
- Preferred Shares (Historical)
- Preferred Stock Equity (Historical)
- Prepaid Expenses (Historical)
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