net profit margin


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Net profit margin

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

Profit Margin

A measure of how well a company controls its costs. It is calculated by dividing a company's profit by its revenues and expressing the result as a percentage. The higher the profit margin is, the better the company is thought to control costs. Investors use the profit margin to compare companies in the same industry and well as between industries to determine which are the most profitable.

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.
References in periodicals archive ?
Companies operating in these three industries are seeing average net profit margins greater than 15 percent, or more than double the private-company average.
As we can see in the ratios and figures there is a significant difference between cash flows (operating profit margin) and net profit margin which shows that they are making further investments to expand and have short term and medium term debts.
Net profit margin (NPM) Profitability ratio (FY 2013)
The Eurozone crisis is standing in the way of improved profitability and we continue to face the prospect of a net profit margin of just 0.
THY Turkish Airlines is targeting 20 percent passenger growth in 2008 and expects to have ended 2007 with a net profit margin of 10 percent, General Manager Temel Kotil said.
Averaging out reported figures from 37 papermaking companies that sell their stock on North American markets, the paper industry checks in with an average net profit margin of 0.
Model of net profit margin has satisfying adjusted R", what means that connection between independent variables and net profit margin is strong enough.
The net profit margin is the percentage of a revenue dollar that a business keeps after all the bills are paid.
The study showed that the least global group of retailers (those with the lowest IMG scores) had an average net profit margin of 3.
The paper said the Superclubs group has a turnover of US$200 million and a net profit margin of between 6% and 7%, providing a return of between US$12 million and US$18 million annually;
The following example is a simple illustration of how much taxes can be saved with an FSC, assuming $1 million in export sales and a net profit margin of 20 percent.