Answer for Net profit margin

I would not adhere strictly to requirements for one particular criteria. I would advise looking at the company as a whole, whether it is a good company or not. Sometimes, having low NPM could mean the company does not have a strong competitive advantage. However, due to the nature of certain industries, 7% could be high. But in other industries, 7% could be low. The key here is to understand the nature of its business and to know whether 7% is considered low or high for its industry. 

About The Author

Peter Lim

Investor (Not Speculator).