net profit margin

Net profit margin

Net income divided by sales; the amount of each sales dollar left over after all expenses have been paid.

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net profit margin

Aftertax net income divided by net sales, a measure of management's ability to carry a dollar of sales down to the bottom line for the stockholders. In other words, net profit margin refers to that which is left for the owners from a dollar of sales after all expenses and taxes have been paid. Also called net margin. Compare gross profit margin, return on sales.