You can use profitability ratios to compare progress over time or across other companies. So if you find your net profit margin every month, you can see the trends over time to see if your profit is increasing. If you have a seasonal business, you’ll have to account for those changes. It’s also a good idea to compare your net profit margin to other companies. What may look like a great net profit margin to you might pale in comparison to your competitors, which can help you improve.