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Financial Statements

Net Profit Margin: Formula, Calculation, Interpretation

Updated on April 17, 2022 · By Ahmad Nasrudin Tag: Financial Ratio, Net Profit, Profitability Margin, Profitability Ratio

Net Profit Margin Formula Calculation Interpretation

What's it: Net profit margin is a profitability ratio to measure how much profit is left (in percent) after the company has covered all its costs, including interest expense and taxes. We calculate it by dividing net profit by revenue.

Tag: Financial Ratio, Net Profit, Profitability Margin, Profitability Ratio

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