Net profit margin

• What does the net profit margin tell

  How effectively a business turn its sales into profit

  How effectively a business is run

  Whether a business is able to “add value “ during the production process
• How can net profit margin be even more useful

  If comparisons can be made in changes in net profit margin over time

  comparing net profit margins of competitors in the same market
• what is the formula for net profit margin ?

  net profit /sales revenue x 100