Annual net profit margin
Definition of Annual net profit margin
Net profit margin is a financial ratio that helps us to assess the profitability of the business. It tells us how effectively the company is using its resources i.e. how effectively and efficiently they are using the resources.
Net profit can be defined as the ratio of the net profit divided by the revenue multiplied by 100.
Net profit margin= (net profit/revenue)*100
Net profit=revenue- COGS- operating cost- other expense- interest- tax
Net profit margin is a ratio to check while doing a fundamental analysis, a good net profit margin implies that the company is running the business efficiently.
