logging in or signing up Net_profit_margin_presentation JulesWest Download Post to : URL : Related Presentations : Let's Connect Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Copy embed code: Embed: Flash iPad Dynamic Copy Does not support media & animations Automatically changes to Flash or non-Flash embed WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 139 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: September 21, 2012 This Presentation is Public Favorites: 0 Presentation Description Calculating net profit margin ratio for publicly traded and privately held companies. Accouting, investments, and finance. Comments Posting comment... Premium member Presentation Transcript Measuring Profitability of a Company – Net Profit Margin: Measuring Profitability of a Company – Net Profit Margin Julia Westlake, MAEd , MBAProfits and Companies: Profits and CompaniesHow do We Measure Profitability?: How do We Measure Profitability? Net Profit Margin Return on Assets Return on Equity or Return on InvestmentNet Profit Margin: Net Profit Margin After cost margin of profits How effectively the company is controlling costs to maximize profits We look for industry appropriate high numbers – they indicate better performanceNet Profit Margin Formula: Net Profit Margin Formula Net Profit Margin = Net Profit After Taxes Total RevenuesWhere to Find the Info: Where to Find the InfoSolve it!: Solve it! Step 1: Identify the formula. Net Profit Margin = Net Profit After Taxes ÷ Total RevenuesSolve it! : Solve it! Step 2: Fill the formula in with the values. Net Profit Margin = Net Profit After Taxes Total Revenues Net Profit Margin = $5,503,100 $27,006,000Solve it!: Solve it! Step 3: Solve it. Net Profit Margin = $5,503,100 $27,006,000 0.20 or 20%Solve it!: Solve it! Step 4: Figure out what it means. For every $1.00 this company spent, it retains 20% which is 20-cents for profit Company is healthy Compare to another company in the same industry or a competitor to place in perspective Competitor comes in at 0.10 or 10% Means this company is doing an excellent job making profits!Net Profit Margin: Net Profit Margin Measure of profitability Information is found on the Income Statement Net Profit After Taxes ÷ Total Revenues Look for industry appropriate high ratios You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.