Net Profit Margin Ratio

Net Profit Margin Ratio Calculation







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Net profit margin ratio formula & calculator may used to find the ratio between net profit and net sales of a company. It's a finance or accounting tool to measure how much percentage of revenue or net income is generated on each sales of a company. A higher net profit margin ratio generally indicates that the company is efficiently converting its revenue or sales into more profitable business or making more net income on each sales and provides more dividend on each shares or increased value of share, and a lower ratio indicates that the company is making less revenue on its each sales and provides less dividends on each shares of a company.

Formula
Net Profit Margin Ratio = Net Profit/Net Sales