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Net Profit Margin Ratio
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Learn accounting with us today ➡️ https://www.theaccountingstudent.co.uk • NET PROFIT MARGIN RATIO • The net profit margin ratio assesses the relationship between net profit and sales. Unsurprisingly, as businesses look to achieve a high gross profit margin they will also aim to achieve a high net profit margin for the entire business and on the products or services they provide. The process used to calculate net profit margin is parallel to the way we calculate the gross profit margin. The only difference is that we replace the gross profit with net profit and then divide this amount by the sales value. The result is then multiplied by one hundred to get the value as a percentage. • This video will help you with questions such as what is net profit margin ratio, how do you calculate net profit ratio, is a high net profit margin ratio good, what is the net profit margin ratio formula, what is a good net profit margin, net profit margin ratio interpretation, net profit margin calculator, profit margin ratio formula, how to calculate net profit margin, net profit margin example, what is a good net profit margin ratio, how do you calculate net profit margin ratio. • MUSIC CREDIT • @benfrydrums • DISCLAIMER • Our content is to be used as an EDUCATIONAL TOOL that aims to provide a foundation for individuals to learn financial accounting, management accounting and bookkeeping topics as practiced in the United Kingdom. As a result, not all complexities are shown or provided. Examples may include but are not limited to; differences between financial reporting, accounting standards or tax treatments. We are NOT ENGAGED in the providing of accounting, bookkeeping, financial, investment, tax, or other professional services. You should consult with a qualified or professional such as an accountant, business advisor, investment specialist, lawyer, solicitor, etc., with regards to specific facts and situations. • #netprofitmarginratio #netprofitmargin #accountingratio
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