Net profit margin is similar to gross profit margin but instead of just considering COGS as a percentage of revenue it includes all expenses in the formula including operating expenses such as rent and utilities in addition to COGS. If youre not using accounting software here are the steps youll need to take to calculate your gross profit margin. Let us then drag this measure into our table to see our profit margins per day.
Gross profit margin 128 billion 2132 billion x 100 6007.
Revenue is the money received for goods and services sold. Sales Price c 1 - M 100. Where Net Profit Revenue - Cost. The net profit margin is equal to how much net income or profit is generated as a percentage of revenue.