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Take a LookQuick Definition
Determines how much profit is left over after each dollar of sales.
There's More to Financial Analysis Than You Think...
The Financial Analysis Success Kit can help!
Why you should take a look at the Financial Analysis Success Kit:
We've combined all our highly popular financial analysis tools into one megafinancialanalysiskit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:

The eBook "Learn Ratio Analysis In Minutes"

The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

A BONUS eBook..."Key Financial Statement Terms"

Another HUGE BONUS...FivePart Financial Ratio Cheat Sheet Series
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Learn more on our product page:
Explanation of 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. This ratio is important to calculate, but you need to look at Gross Profit Margin and Operating Profit Margin as well as Net Profit Margin provides you with the big picture of how well the company is doing.
Importance of Net Profit Margin
As with the other margin ratios, the higher the Net Profit Margin, the better. Taxes, Interest, and expenses not associated with operations will lower this ratio compared to the other margin ratios.