In contrast, companies with lower net profit margins may struggle to generate enough profit to cover their expenses or expand in a sustainable way. The formula for calculating net profit margin is ...

In addition to net profit, two common metrics used to assess a company's core strengths and weaknesses are gross profit and earnings before interest, taxes, depreciation, and amortization (EBITDA).

Calculate net profit margin by dividing net income by total revenue and multiplying by 100. Net profit margin helps compare profitability across businesses and historical performance. Monitoring ...