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The net profit margin ratio is included in the following highlighted FINANCIAL STATEMENT RATIO SPREADSHEETS, NOW ON SALE!

RA -  8 Basic

RA - 15

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RA - 50 Professional

RA - 70 Small Business

RA - 75 Expert

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RA - 125 Wizard

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Profit Margin Ratios 
net profit margin calculation

Formulas to calculate profit margin ratios:


Net Profit Margin Ratio (After Tax Margin Ratio) = net profit after tax / sales.


Pretax Margin Ratio = net profit before taxes / sales.


Operating Profit Margin (Operating Margin) = net income before interest and taxes / sales.


Profit Margin Ratios definitions and explanations:

These three profit margin ratios state how much profit the company makes for every dollar of sales. 

The net profit margin ratio is the most commonly used profit margin ratio.

A low profit margin ratio indicates that low amount of earnings, required to pay fixed costs and profits, are generated from revenues.

A low profit margin ratio indicates that the business is unable to control its production costs.

The profit margin ratio provides clues to the company's pricing, cost structure and production efficiency.

The profit margin ratio is a good ratio to benchmark against competitors.

The profit margin ratio is included in the book "Financial Statement Analysis including over 200 ratios" available for $35 (freight included). Download for $7. Spreadsheet calculators also available.

The net profit margin ratio  is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. 

The net profit margin ratio and operating profit margin ratio are listed in our profitability ratios.

The profit margin ratio and other ratios are key to understanding financial statements. Our ratio calculation spreadsheets reduce time and effort in calculating decision making ratios. They reduce risk for lenders and investors and enable owners, managers and consultants to increase productivity and business profits. These spreadsheets are bargain priced to provide a huge return on investment. Click here for more details.


Spreadsheets to calculate ratios (includes formulas, definitions, explanations and charts):

See list of ratios , or the financial statement ratio analysis spreadsheets which are not highlighted in the left column, to see which other ratios our spreadsheets calculate, define and explain.  

The profit margin, net profit margin, operating profit margin or operating margin may be included in our custom 1, 3 or 5 period financial statement ratio analysis spreadsheet.

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