What is a Net Profit Margin Ratio?

The net profit margin ratio is the percentage of revenue remaining as profit after all expenses, including interest and taxes, are paid. It is calculated by calculated by dividing a company’s net income (earnings after taxes) by its net revenue and multiplying by 100%.

For example, an accountant reviews the Net Profit Margin Ratio to assess the company's financial health and prepare for tax season.

Conçu pour les entreprises. Soutenu par l'expérience.