Definition Net profit shown as a percentage of revenue.
Example A net profit of €400k on revenue of €5m gives a net profit margin of 8%.
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Choose your role to see what this term means in your work.
Why it matters It shows how much of each pound of revenue becomes profit.
Where it is used Finance dashboards and company comparisons.
How to calculate it Net profit ÷ revenue × 100
Worked example A net profit of €400k on revenue of €5m gives a net profit margin of 8%.
