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.
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.
Calculating net profit margins requires basic mathematics.
5 percent or more adds to the net profit margin and often makes the difference between the success or failure of a business.
JOEZ currently enjoys a net profit margin of 7% and a Zacks #2 Rank, which qualifies this company for the Earnings and Margins profit track.
Margins remain weak On revenues that are expected to total $711 billion this year, the net profit margin is expected to be 1.
14, 2013 /PRNewswire/ -- A new review of public data finds the average net profit margin for California's commercial managed care health plans was 3.
In terms of operating performance of steel manufacturers in Asia last year, the CSC posted a net profit margin of 4.
97 per cent, the company had enhanced its net profit margin by 11.
IHS currently enjoys a net profit margin of 12% and a Zacks #2 Rank, which qualifies this company for the Earnings and Margins profit track.