Net Profit Margin Formula
Net Profit Margin =
Net Income / Sales Revenue
What is Net Profit Margin?Net Profit Margin is used to evaluate a company's revenues in respect to its net income, based on every $1 it makes from sales. When evaluating this measure, it is good to look at others within the same industry to get a better idea of how you are doing as every industry has its own "norm" for profit margins.
The video below provides a really good explanation of net profit margin and how to calculate it