business






 

Question by  BJ (26)

What is the definition of net profit margin?

 
+7

Answer by  anthony (45)

Net profit margin is a financial term that is obtained by dividing the business profits over its revenue. Revenue is the company sales for product or services. Profit is the revenues minus the expenses (cost to make the revenue). The net profit margin is usually displayed as a percent.

 
+5

Answer by  noseclams (26)

The net profit margin is equal to net profits divided by net revenue. It is often written as a percentage and gives an idea of how much profit the company makes on each dollar of revenue it brings in.

 
+3

Answer by  danyristea (3)

Net Profit Margin equals the Total Net Income divided by Revenue, expressed as a percentage. The percentage represents the amount of each dollar of Revenue that results in Total Net Income. The amount a company earns after all expenses including taxes, divided by the sales or revenue, and then expressed as a percentage.

 
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