Formula

Net Income / Sales

Services

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Role

C-Level, VP / Director

The Net Profit Margin KPI measures how effective your business is at generating profit on each dollar of revenue you bring in. This financial KPI is a measure of the profitability of your business and is instrumental in making long- and short-term financial decisions. Understanding this KPI may even give you an advantage in a pricing war with your competitors. See also: Gross Profit Margin.

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