Net profit margin is the percentage of a company's revenue that remains as profit after accounting for all operating expenses,taxes, interest and other costs. In other words, it's the measure of profit generated per dollar of revenue. You can think of this metric as a reflection of a comp...
Study the net profit margin definition and learn how to find net profit margin of a business. See how the formula is used to calculate net profit...
Net profit margin is generally represented as a percentage. For example, a net profit margin of 20% means a business keeps 20% of its revenue and spends the remaining 80% on business expenses. When people refer to a business’s ‘bottom line’, they’re most often talking about net profi...
While this is common practice, the net profit margin ratio can greatly differ between companies in different industries. For example, companies in the automotive industry may report a high profit margin ratio but lower revenue as compared to a company in the food industry. A company in the food...
Definition of Net Profit Margin Net profit margin shows the margin left for the equity and preference shareholders, i.e., the owners. Unlike the gross profit, which measures the business’s operating efficiency, it measures the overall efficiency of the business. An adequate margin of net profi...
Want to know how to calculate net profit margin? Find out more about how to work out net profit margin, including net profit margin formulas.
Let’s assume that you’re thinking about investing in a local business, Shop ABC. You want to be sure it is a profitable investment. The owners provide you with theincome statementfor analysis. Step 1: Find the Gross Profit Margin
Net Profit Margin Definition The netprofit margin, also known as netmargin, indicates how muchnet incomea company makes with total sales achieved. A higher net profit margin means that acompanyis more efficient at convertingsalesinto actualprofit. Net profit margin analysis is not the same asgros...
Net Profit Calculation Examples Lesson Summary Register to view this lesson Are you a student or a teacher? I am a student I am a teacher Recommended Lessons and Courses for You Related Lessons Related Courses Creating Contribution Margin Income Statements Operating Expenses | Definition & ...
cleanup,killing- a very large profit fast buck,quick buck- quick or easy earnings, "they are traders out to make a fast buck" filthy lucre- shameful profit; "he would sell his soul for filthy lucre" gross profit,gross profit margin,margin- (finance) the net sales minus the cost of goo...