Net Profit Margin

Formula for calculating net profit margin

The net profit in a business tells an investor or business owner how much money the company makes for every £1 it generates in sales revenue – the higher the profit the better the business. The net profit margin is calculated by dividing total net profit by total sales revenue, for example: XYZ Company Profit […]

Profit and loss statement – Explained

A profit and loss statement explained so that if you are new to business you can understand how this works. The basics of a Profit and Loss Statement is that the report begins with “Total Sales” disclosed net of Value Added Tax (VAT). The next figure to appear on the report is Cost of Sales […]

Scroll to top