The profit Percentage formula is calculated as follows. It is the most important number for the Company analysts investors and shareholders of the Company as it measures the profit earned by the Company over a period of time. Net Income Formula Example 4.
Net Profit Margin 075.
Now you can subtract your total expenses of 5300 from your gross profit of 8000. Suppose a company has a net income of 45000 and net revenue of 60000 in the year 2018. Net Income Total Revenues Total Expenses. After setting aside all your companys costs interest taxes amortization depreciation etc from your net sales you can finally determine your net profitnet income.