Net Profit Margin Graphic

Net Profit Margin

Helps You Identify If

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Net Profit Margin in Jazoodle

Your profit does not necessarily indicate the positive levels of cash generated by your business. It is, however, a reliable time-based measure for gaining an understanding into the overall value that the business is providing. It is also useful to compare the efficiency of different businesses. For instance, a business generating a net margin of 10% is wholly more efficient at generating excess profits (and maybe ultimately cash) relative to its costs than a business generating 5% margins.

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