Product
Reporting Tools
Analytics Suite
Data Management
Profit Simulators
Tweak your numbers to lift profits up
Shop
MarketingPricing
Product
Resources
Company
Pricing
Start TrialLogin
Want to see our dashboard in action?
you can try it here with theDemo Store!
Asked 2 years ago
Hi guys. I found an example of a business with a net profit margin of 10%. Can you please remind me what the net part means again? I'm always getting it mixed up! Is it what is left after deductions, and gross before decutions? How would I calculate it into a percentage? Oh, and is 10% good or bad?
Profit marginBusiness growthBusiness successNet profit margin
+1
Scottie Gordon
Thursday, February 10, 2022
The net profit margin is the percentage of profit a company gets from its total revenue. Its formula is;
Net profit margin= Net profit/ revenue *100
A 10% net profit margin means that for every $1 of revenue the company earns $0.10. This means if a company's revenue is $20,000 and its net profit margin is 10%. Then the company gets a profit of $2,000.
Cody Sanders
Monday, September 26, 2022
A net profit margin is an indicator of a company's overall succes. A high NPM means that a company can effectively control its costs. While a low NPM means that a company uses an ineffective cost structure or poor pricing strategy.
It will depend on the type of industry you're in to known if a 10% net profit margin is good or bad.
Write an answer...
Cancel
Please follow our Community Guidelines
Related Articles
Rebekah Brace
Profit Calculation
Ashley Stander
Profit Calculation
Marcel Deer
E-Commerce Business
Blog
Staff Writer
Blog
Staff Writer
Blog
Staff Editor
Blog
Staff Editor
Blog
Brody Hall
Blog
Ashley Stander
Blog
Brody Hall
Blog
Brody Hall
Blog
Brody Hall
Blog
Brody Hall
Community
Community
Community
Community
Community
Community
Community
Community
Community
Community