After-tax profit margin, or net profit margin, is an important indicator of a company's financial performance—in particular how effectively it manages its costs.

Net profit margin is the percentage of a company's revenue that remains as profit after accounting for all operating expenses, taxes, interest and other costs. In other words, it's the measure of ...

Formula for a Net Profit Margin. ... Finally, subtract taxes to arrive at the net profit. Suppose total sales equal $5 million. Cost of goods equals $2 million, ...

Net profit is what remains after accounting for all expenses, including operating costs, interest, and taxes. In a nutshell, net margin is the percentage of a company's revenue that it keeps as ...

If earnings before interest and taxes (EBIT) is $10,000 and the tax rate is 30%, the net operating profit after tax is 0.7, which equals $7,000 ($10,000 x (1 - 0.3)).

Net Profit Margin The most comprehensive of the three is net profit margin, which factors in every expense. Subtract all expenses — including taxes and interest — from total revenue, then ...

Divide the company's net income by its net sales to find the after-tax profit margin. In this example, divide $1 million by $6.5 million to get 0.1538, or an after-tax profit margin of 15.38 percent.

Likewise, growth-hacking tech companies may have little-to-no net margin for years as they focus on market penetration. An Example. ABC Company has a net profit of $10 million for the fiscal period, ...

Net Profit Margin = Net profit/Sales * 100 In simple terms, net profit is the amount a company retains after deducting all costs, interest, depreciation, taxes and other expenses.

Net profit margin is the percentage of a company's revenue that remains as profit after accounting for all operating expenses, taxes, interest and other costs. In other words, it's the measure of ...