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Net profit margin is calculated as net income divided by sales.

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14y ago

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How do you calculate profit margins?

Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues


How do you calculate profit margin ratio?

net profit/sales


Calculate gross margin percentage?

Gross Profit/Net Sales = Gross Profit Margin.


How do you calculate a profit margin ratio?

Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue


How do you calculate net profit margin if there is net loss?

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.


What is a net margin?

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


If net profit after tax is 64000 and sales is 720000 what is the net profit margin?

Net profit margin = 64000 / 720000 * 100 Net profit margin = 8.89%


What formula would you use to calculate the net profit margin?

You take the Earning before interest and taxes (EBIT)/sales=Operating profit margin


How do you calculate gross margin ratio?

gross margin ratio is calculated as >GROSS PROFIT/NET SALES


What is a net profit margin?

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


profit margin?

it is also known as net profit margin. this ratio shows how much net income a company earns from operations. a higher ratio implies higher profit earned. profit margin is calculated as follows:profit margin = (Net income / Revenue) * 100


Formula for net profit ratio?

Net Profit Margin = Net Profit/ Sales Revenue X 100

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