project report

  Net Profit Margin – Definition, Formula, and Example Net profit margin is one of the most important financial indicators used to evaluate a business’s true profitability. At Sharda Associates , we help business owners understand how much profit actually remains after accounting for all expenses, taxes, and financial obligations. Net profit margin is a financial ratio that shows the percentage of total revenue left as profit after deducting all business expenses, including operating costs, interest, depreciation, and taxes. It reflects the overall efficiency and financial health of a business. Understanding Net Profit Margin in Detail Net profit margin goes beyond simple profit figures and provides a deeper insight into how effectively a business converts its revenue into actual profit. Many businesses report high turnover but still struggle financially because their net margins are weak. This ratio considers every cost incurred by the business , such as raw materials, employee ...