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Net profit margin (NPM) formula

Tags:  corporate finance financial analysis metric

Description of the Net profit margin (NPM) formula

Formula for the calculation of a company's net profit margin.

Formula

\[ NPM=\frac{\text{Net income}}{\text{Revenues}} \ \]

Additional information related to this formula

Related financial formulas

Gross profit margin (GPM)   •   Net profit margin (NPM)