when comparing the net income of multiple companies investors can use various financial metrics or ratios a popular profitability ratio is called profit margin which is niat as a percentage of total revenue of a company the profit margin measures how much out of every dollar of sales a company generates as profit for example a company that generates 1 million in revenue and 200 000 in profit would have a 20 profit margin 200 000 1 000 000 20 100 to convert 20 to a percent in other words for each dollar of revenue generated from sales the company earns 0 20 in profits profitability analysis can help investors determine if a company s net income is favorable when compared to other companies 
real world example of net income after taxesbelow is the income statement for apple inc aapl for the fiscal quarter ending dec 28 2019 according to the company s 10 q filing 1