Net Profit Margin

Net profit margin shows how much of each rupee of revenue remains as profit after all expenses, interest and tax. For a trading or manufacturing firm, revenue is net sales; for a bank, it is usually total income (interest income plus non-interest income) or total operating income.

Related margins include:

• Gross profit margin = Gross profit / Net sales × 100, where gross profit is sales minus cost of goods sold.
• Operating profit margin = Operating profit (EBIT) / Net sales × 100.

A higher margin means better cost control and pricing power. Margins should be compared within the same industry because cost structures vary widely. In the DuPont framework, net profit margin multiplied by asset turnover gives ROA, and multiplied further by the equity multiplier gives ROE.

खुद नाफा मार्जिनले आम्दानीको प्रत्येक रुपैयाँबाट सबै खर्च, ब्याज र कर तिरेपछि कति नाफा बाँकी रहन्छ भन्ने देखाउँछ। व्यापारिक फर्मका लागि आम्दानी भनेको खुद बिक्री र बैंकका लागि कुल आम्दानी (ब्याज + गैरब्याज) हो।

सम्बन्धित मार्जिन: कुल नाफा मार्जिन = कुल नाफा / खुद बिक्री × १००; सञ्चालन नाफा मार्जिन = सञ्चालन नाफा (EBIT) / खुद बिक्री × १००। उच्च मार्जिनले राम्रो लागत नियन्त्रण र मूल्य निर्धारण क्षमता देखाउँछ। DuPont अनुसार खुद नाफा मार्जिन × सम्पत्ति आवर्तन = ROA।