Business Net Profit Margin Solution

STEP 0: Pre-Calculation Summary
Formula Used
Net Profit Margin = Net Income/Sales*100
NPM = NI/S*100
This formula uses 3 Variables
Variables Used
Net Profit Margin - Net Profit Margin is often referred to as the bottom line, this ratio takes all expenses into account including interest.
Net Income - Net income is a company's total earnings.
Sales - Sales is the total sales for the period.
STEP 1: Convert Input(s) to Base Unit
Net Income: 200000 --> No Conversion Required
Sales: 1000000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
NPM = NI/S*100 --> 200000/1000000*100
Evaluating ... ...
NPM = 20
STEP 3: Convert Result to Output's Unit
20 --> No Conversion Required
FINAL ANSWER
20 <-- Net Profit Margin
(Calculation completed in 00.004 seconds)

Credits

Created by Team Softusvista
Softusvista Office (Pune), India
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Bhilai Institute of Technology (BIT), Raipur
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Business Net Profit Margin Formula

Net Profit Margin = Net Income/Sales*100
NPM = NI/S*100

How to Calculate Business Net Profit Margin?

Business Net Profit Margin calculator uses Net Profit Margin = Net Income/Sales*100 to calculate the Net Profit Margin, Business Net Profit Margin is often referred to as the bottom line, this ratio takes all expenses into account including interest. Net Profit Margin is denoted by NPM symbol.

How to calculate Business Net Profit Margin using this online calculator? To use this online calculator for Business Net Profit Margin, enter Net Income (NI) & Sales (S) and hit the calculate button. Here is how the Business Net Profit Margin calculation can be explained with given input values -> 20 = 200000/1000000*100.

FAQ

What is Business Net Profit Margin?
Business Net Profit Margin is often referred to as the bottom line, this ratio takes all expenses into account including interest and is represented as NPM = NI/S*100 or Net Profit Margin = Net Income/Sales*100. Net income is a company's total earnings & Sales is the total sales for the period.
How to calculate Business Net Profit Margin?
Business Net Profit Margin is often referred to as the bottom line, this ratio takes all expenses into account including interest is calculated using Net Profit Margin = Net Income/Sales*100. To calculate Business Net Profit Margin, you need Net Income (NI) & Sales (S). With our tool, you need to enter the respective value for Net Income & Sales and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Net Profit Margin?
In this formula, Net Profit Margin uses Net Income & Sales. We can use 1 other way(s) to calculate the same, which is/are as follows -
  • Net Profit Margin = Net Income/Sales*100
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