Accounting word of the Week: Net-Profit Margin
Today, we are looking at the net-profit margin. The net profit margin is the ratio of net profits to revenues for a company or business segment. The net-profit margin is typically expressed as a percentage on the income statement. The net-profit margin shows how much of each dollar collected by a company as revenue translates into profit. The equation to calculate net-profit margin is: Net Profit ------------ Revenue It is important to note that net margins will vary from