{Revenues-(Cost of Goods Sold+Operating Expenses+Other Expenses+Interest+Tax and Non Tax Expenses-Tax and Non Tax Income)/Revenues}*100 Or to put it simpler, you could use the equation; (net profit/turnover)*100
(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%
Gross Profit/Net Sales = Gross Profit Margin.
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
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.
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 percentage shows how much money is left, after paying expences from running the business, as a percentage.
net profit/sales
Net profit percentage, which is the percentage of net income to revenues, is a measure of profitability and can show how effective a company is in bringing sales to the bottom line. Net profit percentage can be compared to other companies in its industry, or to the company itself in measuring improvement (or general rate) of profitability.
The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100
Net Income = Sales - Gross profit Gross Profit - Cost of Production = Net Income
Net Profit Before Tax(N.P.B.T.) = Total sales - Total Expenses.