Net profit margin is net profit divided by net revenue for the same reporting period, multiplied by 100. It expresses the percentage of revenue remaining after the full included expense scope. Use matching currency and revenue excluding VAT that is not income.[1]
It is not interchangeable with gross margin or contribution percentage. A channel can look attractive at order level while shared costs reduce the business's net margin. Compare consistent expense treatment and identify exceptional items. A percentage improvement does not, without revenue volume, show the additional currency profit earned.
Content updated:
Sources
Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.