The Also known as net income or net margin, the net profit is the net income on an income statement. It is the revenue minus... margin shows how much a business is generating profit for every dollar of cost, expenses, A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at..., and taxes involved. It is displayed as the percentage of how much of each dollar collected by a company as revenue translates to net profit. The calculation is similar to The gross profit margin shows how much a business is generating profit for every dollar of cost involved, displayed as the percentage of revenue..., but the formula also subtracts expenses, interest, and taxes from revenue.
Net Profit Margin = ((Revenue – Also known as Cost of Sales, Cost of Goods Sold includes the direct costs associated with generating revenue. Depending on the business, it can... – Expenses – Interest – Taxes)/Revenue) * 100