Net profit divided by net revenues, often expressed as a percentage. This number is an indication of how effective a company is at cost control. The higher the net profit margin is, the more effective the company is at converting revenue into actual profit. The net profit margin is a good way of comparing companies in the same industry, since such companies are generally subject to similar business conditions. However, the net profit margins are also a good way to to compare companies in different industries in order to gauge which industries are relatively more profitable. also called net margin.
Related information about net profit margin:
- Profit margin - Wikipedia, the free encyclopedia
Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the ...
- Profit Margin Definition | Investopedia
... a 20\% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales. Also known as Net Profit Margin. Investopedia Says ...
- Net Profit Margin - Investing for Beginners - About.com
Net profit margin is a ratio comparing net profit after taxes to revenue. Investors can calculate the net profit margin by using the income statement.
- Net Profit Margin Definition, Formula & Example | InvestingAnswers
We explain the definition of Net Profit Margin, provide a clear example of how it works and explain why it's an important concept in business, finance & investing.
- Net Profit Margin - Financial Dictionary - The Free Dictionary
Net profit margin. Net income divided by sales; the amount of each sales dollar left over after all expenses have been paid. Profit Margin. A measure of how well ...
- What is net profit margin? definition and meaning
Definition of net profit margin: Net profit divided by net revenues, often expressed as a percentage. This number is an indication of how effective a company is at ...
- Net Profit Margin - Financial Formulas and Calculators
Net Profit Margin Calculator (Click Here or Scroll Down) ... The net profit margin formula looks at how much of a company's revenues are kept as net income.
- What Does Net Profit Margin Ratio Measure? | Chron.com
One of the most essential aspects of launching and operating a business is selling enough goods or services to pay for the company's costs. If a company can't ...