Several factors can impact a company's net profit margin, including:
Cost of Goods Sold (COGS): Higher production costs can reduce the net profit margin. Operational Efficiency: Streamlining operations can lower expenses and improve margins. Pricing Strategy: Effective pricing can enhance revenue without significantly increasing costs. Market Conditions: Economic downturns or competitive pressures can affect profitability. Tax Policies: Changes in taxation can impact the net profit margin.