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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 2 Variables
Variables Used
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 00.016 seconds)

10 Other formulas that you can solve using the same Inputs

Diluted Earnings per Share
diluted_earnings_per_share = Net Income/(Average Shares+Other Convertible Securities) Go
Retention Ratio
retention_ratio = (Net Income-Dividend)/Net Income Go
Business Operating Profit Margin
operating_profit_margin = Operating Income/Sales*100 Go
Operating Profit Margin
operating_profit_margin = Operating Income/Sales*100 Go
Dividend Payout Ratio
dividend_payout_ratio = Total Dividends/Net Income Go
Business Gross Profit Margin when Gross Profit and Sales are given
gross_profit_margin = Gross Profit/Sales*100 Go
Gross Profit Margin when Gross Profit and Sales are given
gross_profit_margin = Gross Profit/Sales*100 Go
Return on Equity when Net Income is given
return_on_equity = Net Income/Total Equity Go
Total Asset Turnover
total_asset_turnover = Sales/Total Assets Go
Net Profit Margin
net_profit_margin = Net Income/Sales*100 Go

1 Other formulas that calculate the same Output

Net Profit Margin
net_profit_margin = Net Income/Sales*100 Go

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 and 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) and 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 and 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) and Sales (S). With our tool, you need to enter the respective value for Net Income and 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 and 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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