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Net profit margin is net profit divided by revenue. Net profit is calculated as revenue minus all expenses from total sales. Example. A company has $1,000,000 in revenue, $600,000 in COGS, $200,000 in operating expenses, and $50,000 in taxes. Net profit is $150,000, and net profit margin is (150,000 / 1,000,000) x 100 = 15%.
v. t. e. In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period. [1] [2]
Operating margin. In business, operating margin —also known as operating income margin, operating profit margin, EBIT margin and return on sales ( ROS )—is the ratio of operating income ("operating profit" in the UK) to net sales, usually expressed in percent. Net profit measures the profitability of ventures after accounting for all costs ...
In Cost-Volume-Profit Analysis, where it simplifies calculation of net income and, especially, break-even analysis.. Given the contribution margin, a manager can easily compute breakeven and target income sales, and make better decisions about whether to add or subtract a product line, about how to price a product or service, and about how to structure sales commissions or bonuses.
Operating margin, Operating Income Margin, Operating profit margin or Return on sales (ROS) [9] [10] Operating Income / Net Sales Note: Operating income is the difference between operating revenues and operating expenses, but it is also sometimes used as a synonym for EBIT and operating profit. [ 11 ]
Net interest margin ( NIM) is a measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits), relative to the amount of their (interest-earning) assets. It is similar to the gross margin (or gross profit margin) of non ...
e. In corporate finance, net operating profit after tax ( NOPAT) is a company's after- tax operating profit for all investors, including shareholders and debt holders. [ 1] NOPAT is used by analysts and investors as a precise and accurate measurement of profitability to compare a company's financial results across its history and against ...
Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market capitalization by the revenue in the most recent year; or, equivalently, divide the per-share price by the per-share revenue. The justified P/S ratio is calculated as the price-to-sales ratio based on the Gordon Growth Model.