to calculate profit margin ratios:
Ratio (After Tax Margin Ratio) = net profit after tax / sales.
Margin Ratio = net profit before taxes / sales.
Profit Margin (Operating Margin) = net income before
interest and taxes / sales.
Margin Ratios definitions and explanations:
These three profit margin ratios state how much
profit the company makes for every dollar of
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
The profit margin ratio provides clues to the
company's pricing, cost structure and production
The profit margin ratio is a good ratio to benchmark
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
|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.
calculate ratios (includes formulas, definitions,
explanations and charts):
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.
to order excel
accounting spreadsheet to calculate 15 ratios with
formulas, definitions, calculations, charts, and
explanations for each ratio.
Order free 3 ratio
calculator spreadsheet. Current, quick and
debt-to-equity ratios with formulas, calculations,
charts and explanations. Email
us at firstname.lastname@example.org.