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Net Profit Margin = (Net Profit / Revenue) x 100. To calculate the net profit margin, divide the net profit by total revenue and multiply by 100 to express the value as a percentage.
For example, if your revenue is $100,000, and your COGS is $50,000, your gross profit margin would be (100,000 - 50,000)/100,000. This equation returns a gross profit margin of 50%.
Accounting profit is also known as the net income for a company or the bottom line. Here you will learn what profit is in accounting and how to calculate it.
Sales Minus Expenses Equals Profit. In 2014, Mike Michalowicz came along and published the book Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine.In the ...
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