Net Profit Margin

 

What is Net Profit Margin ? 

 

It is a profitability ratio of the company's sales. The value of this ratio is given by dividing two factors of the income statements of the company's accounts.

 

 

 

By comparing this ratio with the Return On Investment the company's management can be supported in a deep analysis whether to improve margin and therefore efficiency in the operating management of the company or to carry out other strategic decisions. 

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