What is the net profit margin?
What is the net profit margin?
Definition of Net Profit Margin
Must start by knowing the word net profit, what is it? The meaning of net profit is Profit minus expenses, interest, and all income taxes. Then the meaning of net profit margin is to measure or evaluate the financial ratio of net profit and sales. This indicates the ability to make net profits of that business and also indicates the operational efficiency and ability of the management of that business.
How to get the net profit margin?
The net profit margin is easy to calculate.
Net Profit Margin = Net Profit/Sales x 100
If calculated, a high value indicates that the operations and results are qualitative and profitable. But if the calculation comes out and the value is low, it indicates that there is a problem with the operation. Profitability is not very good
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