Net Profit Margin

Measures how effective your business is at generating profit on each dollar of revenue you bring in.

Financial KPI Examples | Net Profit Margin

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.

Formula

Net Income / Sales

Services

ChartMogul Dashboard | ChartMogul logo QuickBooks Dashboard | Quickbooks logo

Role

C-Level, VP / Director

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