Net profit margin is the ratio of net profits to revenues for a company or business segment. By using the formula we can see that Net Profit 100000 - 20000 - 30000 - 10000 - 10000 30000 Net Profit vs. Even a small increase in price can.
This amount is subtracted from gross profit.
The net profit is also given ie 30000. Both of these figures are listed on the face of the income statement. For the purpose of this ratio net profit is equal to gross profit minus operating expenses and income tax. Remove unprofitable products and services.