Want this question answered?
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
Business net profit is adjusted for things like tax depreciation as well as some items which are not allowed by tax department as expense or income or deduction to arrive at taxable profit.
Net Income = Sales - Gross profit Gross Profit - Cost of Production = Net Income
ROS= NET PROFIT/ SALES
Gross Profit/Net Sales = Gross Profit Margin.
Net profit before interest and tax amount is selected for cash flow from operating activities and after that interest and tax is deducted while net profit before tax means net profit is adjusted for interest already while net profit before interest and tax means net profit is not adjusted for interest as well as for tax.
Net profit margin is calculated as net income divided by sales.
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
net profit/sales
Business net profit is adjusted for things like tax depreciation as well as some items which are not allowed by tax department as expense or income or deduction to arrive at taxable profit.
Net Income = Sales - Gross profit Gross Profit - Cost of Production = Net Income
Net Profit Before Tax(N.P.B.T.) = Total sales - Total Expenses.
(Net profit/Net Revenue) * 100 = Net Profit Percentage Ex: Net Revenue = 10,000 USD Expenditure = 7500 USD Profit = 2500 USD Profit Percentage = 2500/10000 * 100 = 25%
ROS= NET PROFIT/ SALES
Gross Profit/Net Sales = Gross Profit Margin.
The Gross Profit Margin = Gross Profit/Revenue*100 regardless of weather the Gross Profit is positive or negative (a loss). Therefor, it is acceptable to have a negative Gross Profit Margin.
The profit and loss account is the account that can be used to calculate the net loss.