Net profit margin
What Net profit margin means in Business GCSE, as defined for AQA, Pearson Edexcel.
Definitions of Net profit margin
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Reference: AQA
Calculated as (net profit ÷ revenue) × 100, it shows overall profitability after all expenses.
Calculated as (net profit / sales revenue) × 100, revealing profitability after all expenses.
Topics that use Net profit margin
- Analysing the financial performance of a business (AQA GCSE)
- Business calculations (Pearson Edexcel GCSE)
Related terms
- Gross profit margin
- Asset and liability classification
- Assets
- Average rate of return
- Average Rate of Return (ARR)
- Business decision making
- Calculating and comparing ratios and totals
- Cash Flow Forecast
Using Net profit margin in the exam
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