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/sales
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 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 profit margin = 64000 / 720000 * 100 Net profit margin = 8.89%
You take the Earning before interest and taxes (EBIT)/sales=Operating profit margin
gross margin ratio is calculated as >GROSS PROFIT/NET SALES
profit margin
The profit and loss account is the account that can be used to calculate the net loss.
Contribution Margin = Sales - Variable Cost Sales Less:Variable Cost Contribution Margin Less:Fixed Cost Net profit(Loss)