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 * 100

This 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%

Examples

=hf_Post_Tax_Profit_Margin("AAPL", 2023, 4)
Q4 2023 net margin
=hf_Post_Tax_Profit_Margin("MSFT", "ly")
Last fiscal year
=hf_Post_Tax_Profit_Margin("GOOGL", 2023, , "TTM")
TTM value
=hf_Post_Tax_Profit_Margin(A1, B1, C1)
Cell references
=hf_Post_Tax_Profit_Margin("META", "lq")
Last quarter

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

Q: Why is net margin so much lower than gross margin? A: Net margin reflects ALL costs: COGS, operating expenses, interest, and taxes. Gross margin only deducts COGS. The gap shows total operating and financial costs.

Q: What's a good net margin? A: 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.

Q: Why might net margin fluctuate? A: 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.

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MarketXLS Excel Add-in Tutorial - How to Use Post-Tax Profit Margin (Historical) and Other Financial Formulas
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