Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
What is the relationship between profit margins and growth capacity?
net profit
Net profit is not the same as net income. There are many things that can be deducted on a tax return form from net profit that reduce net profit down to net income.
52
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
It is $14
The Gross Profit Margin = Gross Profit/Revenue*100 regardless of weather the Gross Profit is positive or negative (a loss). Therefor, it is acceptable to have a negative Gross Profit Margin.
What is the relationship between profit margins and growth capacity?
Manufacturers, prices, and goods are nouns. Either margins or the compound form "profit margins" can be a noun, since profit is acting as a noun adjunct.
net profit
46%
The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100
Net profit is not the same as net income. There are many things that can be deducted on a tax return form from net profit that reduce net profit down to net income.
net profit is a profit after tax(PAT)
GROSS PROFIT Gross Profit is the difference between Net Sales and Cost of Goods Sold. First, Net Sales is calculated by subtracting Sales returns and allowances from Sales. Sales - Sales Returns and Allowances = Net Sales Next, Gross Profit is calculated by subtracting Cost of Goods Sold from Net Sales. Net Sales - Cost of Goods Sold = Gross Profit Gross Profit is expressed as a dollar figure, like $100. If Cost of Goods Sold exceeds Net Sales, Gross Profit figure will be negative. PROFIT MARGIN Profit Margin is not a dollar figure. Profit Margin shows the percentage of each sales dollar that results in net income. First, Net Income is calculated by subtracting Operating Expenses from Gross Profit. Gross Profit - Operating Expenses = Net Income Next, the Profit Margin ratio is constructed, and the result is expressed as percentage. Net Income : Net Sales = Profit Margin For example, assume that Net Income equals $10,000 on Net Sales of $100,000. In this case Profit Margin equals $10,000 : $100,000 = 0.10 = 10%. GROSS PROFIT MARGIN Terms "Gross margin" and "Gross profit margin" have been invented by some enterprising accounting students. These terms are part of accounting jargon in some colleges. The meaning of those terms is very liberal, - it means whatever one wants it to mean. For example, "Gross Profit" may mean either Gross Profit or Profit Margin. Most likely, it means that the speaker does not know the meaning of either one of the terms. But "Gross Profit Margin" surely takes the cake. It's just a mouthful piece.
Net profit margin = 64000 / 720000 * 100 Net profit margin = 8.89%