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Net Profit Margin: Definition, Formula, How to CalculateFor example, if a company has a net profit of $50,000 and total revenue of $500,000, the net profit margin would be: Net Profit Margin = ($50,000 / $500,000) x 100 = 10% Net profit margin and ...
To gauge the extent of profits, there is no better metric than net profit margin. In simple terms, net profit is the amount a company retains after deducting all costs, interest, depreciation ...
For example, although the average profit margin for the financial services industry ... A company's profit margin is calculated by dividing a company's net income by its total revenues and is ...
In fact, net profit margin can turn out to be a potent point of reference to gauge the strength of a company’s operations and its cost-control measures. Also, higher net profit is essential for ...
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