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Least Profitable Industries
- Green and Renewable Energy industry had the lowest net profit margin at -11.39% in 2020, making it the least profitable industry.
- Companies operating oil and gas wells had a net profit margin loss of 7.6%, comprising the least profitable industry in the U.S.
Analysis of Profitable Industries
- Sageworks analyzed private company financial statements, using net profit margin to rank industries.
- Profitable service-based industries don’t require major investments in materials or operations. This benefits entrepreneurs who can’t invest millions in a startup.
Comparison of Business Profits
- The airline industry historically runs on high volume and low margins.
- Retail is also among the least profitable U.S. industries, while tech companies generally see higher margins and are more recession proof than traditional media firms.