How To Find Net Profit Margin?

Net Profit Margin = (Net Profit ÷ Revenue) × 100

Find total revenue

Subtract all expenses from revenue to get net profit

Divide net profit by revenue

Multiply the result by 100 to get the percentage

Use the formula: (Net Income ÷ Sales) × 100

Higher net profit margin means more profit from each dollar of revenue

Lower net profit margin means less profit from each dollar of revenue

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