Net Profit Margin

A ratio of profitability calculated as net income per time period, divided by the total revenues per time period. It measures how much out of every dollar of sales a company actually keeps in earnings.

Variables: Revenue, Cost of Goods sold (COGS), taxes

Measured as: Percentage (%),

Calculation: ((Revenue - COGS - taxes)/total revenue * 100%

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Posted in All private sectors, Finance & Control, Financial, KPI

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