Posted inAll sectors / Finance & Control / Financial

Net Profit Margin

Definition of this KPI:
Net Profit Margin is a fundamental financial metric that measures a company's profitability by expressing the percentage of net income (profits) in relation to total revenue. It's a key performance indicator (KPI) that provides valuable insights into a company's ability to convert its sales into profits after all expenses, including operating costs, interest, taxes, and other deductions.

  • This KPI can be calculated as: (Net income / Total revenue) * 100
  • The KPI will be measured as: percentage (%)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Financial stability
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