Net Profit Margin
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Analysis and Interpretation of Financial Statements for Decision Making
MS: Peratus Untung Bersih · EN: Net Profit Margin · ZH: 净利率
Meaning
The net profit margin measures the portion of net profit in every ringgit of sales after deducting all expenses. Its formula is (net profit ÷ sales) × 100. It shows how efficiently the business controls operating expenses in addition to the cost of purchases.
Example
Segar Jaya Enterprise earns sales of RM250,000 with a net profit of RM25,000. The net profit margin is (25,000 ÷ 250,000) × 100 = 10%, that is 10 sen of net profit for every RM1 of sales.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5