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What (who) is net profit margin - definition

RELATING GROSS PROFITS TO NET SALES

Gross Margin; Gross profit margin; Gross margin ratio; Gross profit percentage; Margin (%); Unit margin

Gross margin

Gross margin is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage.

https://en.wikipedia.org/wiki/Gross_margin

Net income

MEASURE OF THE PROFITABILITY OF A BUSINESS VENTURE

Net profit; Net pay; Net Profit; Net Income; Bottom line; Return on revenue; Return On Revenue; Net revenue; Net earning; Net earnings; Nett revenue; Pre-tax profit; Pretax profit; Bottomline; Profit After Tax; Net payment; Net salary; I minus E basis; I minus E; After‐tax profit

In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period.

https://en.wikipedia.org/wiki/Net_income

net profit

MEASURE OF THE PROFITABILITY OF A BUSINESS VENTURE

Net profit; Net pay; Net Profit; Net Income; Bottom line; Return on revenue; Return On Revenue; Net revenue; Net earning; Net earnings; Nett revenue; Pre-tax profit; Pretax profit; Bottomline; Profit After Tax; Net payment; Net salary; I minus E basis; I minus E; After‐tax profit

¦ noun the actual profit after working expenses have been paid.

Wikipedia

Gross margin

Gross margin is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold (e. g. production or acquisition costs, not including indirect fixed costs like office expenses, rent, or administrative costs), then divided by the same selling price. "Gross margin" is often used interchangeably with "gross profit", however the terms are different: "gross profit" is technically an absolute monetary amount and "gross margin" is technically a percentage or ratio.

Gross margin is a kind of profit margin, specifically a form of profit divided by net revenue, e. g., gross (profit) margin, operating (profit) margin, net (profit) margin, etc.

https://en.wikipedia.org/wiki/Gross margin

Examples of use of net profit margin

1. Rami Levy‘s net profit margin is 5 percent, which is high for a retail chain.

2. The company‘s net profit margin also increased by 1.3 points, to 7.1 percent, compared to the same period the previous year.

3. He said he expected Aramex‘s revenues from existing businesses to grow 15 per cent in 2006, if the region‘s economic growth remained strong, and to maintain its net profit margin of 8.4 per cent.

4. According to the Global report, the company reported net income of SR700.4 million in 2006 compared to a loss of SR1.2 billion in the previous period, with a net profit margin of 11.3 percent.

5. Across the Group, initiatives to improve efficiency and keep a tight rein on costs have also contributed to the positive results, as the Group maintained a strong net profit margin of 11.8 percent.