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About Net Profit Margin
The Net Profit Margin measures the Net Earnings in relation to the Net Sales. After all the bills are paid and expenses covered, this ratio measures how much net profit remains out of each dollar of sales.
Interpreting the Calculator Results
If Net Profit Margin increases over time:
An increasing Net Profit Margin usually shows the net profit out of each dollar of sales has become larger.
If Net Profit Margin decreases over time:
A decreasing Net Profit Margin usually shows the net profit out of each dollar of sales has become smaller.
If Net Profit Margin stays the same over time:
An unchanged Net Profit Margin usually shows the net profit out of each dollar of sales has remained the same.