Definitions for "net profit margin"
Related Terms:
Profit margin, Net margin, Return on sales, Operating margin, Operating profit margin, Gross profit margin, Profit, Economic profit, Operating profit, Net profit, Operating ratio, Net revenue, Operating income, Profitability, Net return, Return on assets, Net loss, Return on capital, Return on investment, Net earnings, Earnings before interest and taxes, Earnings, Gross margin, Net sales, Ebitda margin, Nopat, Margins, Revenues, Return on capital employed, Return-on-investment, Return on equity, Bottom line, Retention ratio, Return on invested capital, Net income, Economic value added, Roce, Gross profit, Net interest margin, Trading profit, Total revenue, Efficiency ratio, Net investment, Ebitda, Gross yield, Revenue, Net income multiplier, Profitability, Total asset turnover, Roe
Net profit divided by net revenues, often expressed as a percentage. This number...
Net profit expressed as a percentage of sales.
This is a widely used measure of performance and is comparable across companies in similar industries. The fact that a business works on a very low margin need not cause alarm because there are some sectors that work on a basis of high turnover and low marginsNet Profit Margin = Pre tax profits Sales
The ratio of net profit divided by net sales.
The percentage of profit earned for each unit of sales calculated by dividing net income by net sales.
Same as net margin.
net income before nonrecurring gains and losses as a percentage of sales or revenues.
Also known as Return on Sales, this value is the Income After Taxes for the trailing twelve months divided by Total Revenue for the same period and is expressed as a percentage.
Net profit (or loss) after interest and taxes as a percent of operating revenues.
(Profit after tax / Net Sales)*100
The net income measured as a percentage of operating revenues.
A performance measure based on a retailer's net profit and net sales. It is equal to net profit divided by net sales.
measures profitability as a percentage of revenues after consideration of all revenue and expense, including interest expenses, non-operating items, and income taxes. For a business to be viable in the long term profits must be generated; making the net profit margin ratio one of the key performance indicators for any business. It is important to analyze the ratio over time. A variation in the ratio from year-to-year may be due to abnormal conditions or expenses which need to be addressed. A decline in the ratio over time may indicate a margin squeeze suggesting that productivity improvements may need to be initiated. In some cases, the costs of such improvements may lead to a further drop in the ratio or even losses before increased profitability is achieved.
incorporates all of the expenses associated with ordinary business (excluding taxes) thus is a measure of the overall operating efficiency of the firm prior to any tax considerations which may mask performance. For a business to be viable in the long term profits must be generated; making the net profit margin ratio one of the key performance indicators for any business. It is important to analyze the ratio over time. A variation in the ratio from year-to-year may be due to abnormal conditions or expenses which need to be addressed. A decline in the ratio over time may indicate a margin squeeze suggesting that productivity improvements may need to be initiated. In some cases, the costs of such improvements may lead to a further drop in the ratio or even losses before increased profitability is achieved.
equals Net Operating Income divided by Sales, expressed as a percentage. It represents the cents per dollar of sales that the company extracts in profits. Finance professionals view this metric as a critical gauge because it indicates operating efficiency.
A measure of a company's profitability and efficiency, calculated by dividing a measure of net profits (operating profit minus depreciation and income taxes) by sales
Net profit/ sales. Shown as a percentage. Net profit margin is a very important number for benchmarking. Can be pre- or after tax.
Total profit minus cost made in a year as a percentage of sales. Since operating profit equates to "gross profit minus operating costs" this ratio goes beyond gross margin to consider the impact of "other expenses" as well. In addition to changes in volumes, selling price, unit costs or product mix, fluctuations in "operating costs" will also affect this ratio. Net margin is a key indicator of trading or operational performance. Net margin = Operating profit Turnover
Net profit margin is a ratio comparing net profit after taxes to revenue. Investorscan calculate the net profit margin by using the income statement. Net profit margin is calculated by dividing income before extraordinary items by total revenue and multi
Net income as a percentage of sales. You get this by dividing net income by sales. Since it's a percentage, it tells you how many cents on each dollar of sales is pure profit.
Earnings divided by revenue.
Net income divided by sales; the amount of each sales dollar left over after all expenses have been paid.
The net income of a company as a percentage of its sales or revenue. If a company has sales or revenue of $2.5 million and net income of $350,000, its net profit margin is 350,000 divided by 2,500,000, or 14%. This ratio measures a company's operating efficiency (how much of its revenue it spends on expenses), its pricing strategy (how high above its costs can the company price its products), and the amount of profit per sale it makes.
net sales net worth