FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Business Net Profit Margin Formula

GoNet Profit Margin Formula

Fx Copy

LaTeX Copy

Net Profit Margin is often referred to as the bottom line, this ratio takes all expenses into account including interest. Check FAQs

NPM = \frac{NI}{S} \cdot 100

NPM - Net Profit Margin?NI - Net Income?S - Sales?

Business Net Profit Margin Example

With values

With units

Only example

Here is how the Business Net Profit Margin equation looks like with Values.

Here is how the Business Net Profit Margin equation looks like with Units.

Here is how the Business Net Profit Margin equation looks like.

20 = \frac{200000}{1E+6} \cdot 100

20 = \frac{200000}{1E+6} \cdot 100

20 = \frac{200000}{1E+6} \cdot 100

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Business » Category

Financial Ratios » fx Business Net Profit Margin

Business Net Profit Margin Solution

Follow our step by step solution on how to calculate Business Net Profit Margin?

FIRST Step Consider the formula

NPM = \frac{NI}{S} \cdot 100

Next Step Substitute values of Variables

∴

NPM = \frac{200000}{1E+6} \cdot 100

Next Step Prepare to Evaluate

∴

NPM = \frac{200000}{1E+6} \cdot 100

LAST Step Evaluate

∴

NPM = 20

Business Net Profit Margin Formula Elements

Variables

Net Profit Margin

Net Profit Margin is often referred to as the bottom line, this ratio takes all expenses into account including interest.

Symbol: NPM

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Net Profit Margin

Net Income

Net income is a company's total earnings.

Symbol: NI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Net Income

Sales

Sales is the total sales for the period.

Symbol: S

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Sales

Other Formulas to find Net Profit Margin

Go Net Profit Margin

NPM = \frac{NI}{S} \cdot 100

Other formulas in Profitability Ratio category

Go Business Operating Profit Margin

OPM = \frac{OI}{S} \cdot 100

Go Pre Tax Margin Ratio

PTI = (\frac{EBT}{S}) \cdot 100

Go Return on Assets Ratio

ROA = \frac{NI}{TA}

Go EBIT Return on Assets

ROA = \frac{EBIT}{ATA}

How to Evaluate Business Net Profit Margin?

Business Net Profit Margin evaluator uses Net Profit Margin = Net Income/Sales*100 to evaluate the Net Profit Margin, Business Net Profit Margin is often referred to as the bottom line, this ratio takes all expenses into account including interest. Net Profit Margin is denoted by NPM symbol.

How to evaluate Business Net Profit Margin using this online evaluator? To use this online evaluator for Business Net Profit Margin, enter Net Income (NI) & Sales (S) and hit the calculate button.

FAQs on Business Net Profit Margin

What is the formula to find Business Net Profit Margin?

The formula of Business Net Profit Margin is expressed as Net Profit Margin = Net Income/Sales*100. Here is an example- 20 = 200000/1000000*100.

How to calculate Business Net Profit Margin?

With Net Income (NI) & Sales (S) we can find Business Net Profit Margin using the formula - Net Profit Margin = Net Income/Sales*100.

What are the other ways to Calculate Net Profit Margin?

Here are the different ways to Calculate Net Profit Margin-

Net Profit Margin=Net Income/Sales*100

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Business Net Profit Margin Formula

​GoNet Profit Margin Formula

Business Net Profit Margin Example

Business Net Profit Margin Solution

Business Net Profit Margin Formula Elements

Other Formulas to find Net Profit Margin

Other formulas in Profitability Ratio category

How to Evaluate Business Net Profit Margin?

FAQs on Business Net Profit Margin

Variable Name

GoNet Profit Margin Formula