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Meaning of net profit margin

 

 

 

Net profit margin

 

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Business glossary

 

Meaning of term net profit margin :

 

The net profit margin measures net profit as a percentage of the sales that generated it. It is calculated by dividing the net profit by the turnover and multiplying by 100 to get the figure as a percentage. A net profit margin of 15% means that for every £100 of goods sold the firm will make a net profit of £15.

 

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