Revenue Net Income Profit Margin

What is net profit margin.

Revenue net income profit margin. But is that good. That makes your net profit margin 44 61 meaning that for every dollar in revenue that your business earns nearly 0 45 is earned in net profit. If a company has a 20 net profit margin for example that means that it keeps 0 20 for every 1 in sales revenue. In the context of profit margin calculations.

The net profit margin is a ratio that compares a company s profits to the total amount of money it brings in. Profit is the bottom line or net income after accounting for all expenses debts and operating costs. Although net revenue and gross margin are useful internal figures external parties care most about net income. The three main profit margin metrics are gross profit total revenue minus cost of goods sold cogs operating profit revenue minus cogs and operating expenses and net profit revenue minus all expenses means for each 1 of revenue the company earns 0 10 in net profit.

Revenue is the total amount of income generated by a company. Net profit margin is calculated by dividing the net profits by net sales or by dividing the net income by revenue realized over a given time period. Revenue represents the total sales of the company in a period.