[Accounting| Financial| Income Statement] The Net Profit Margin is the ratio of earnings after interest and taxes to sales. This shows how much of each dollar earned by the company is translated into profits. Net Margins will vary from company to company, and certain ranges can be expected from industry to industry, as similar business constraints exist in each distinct industry. Most publicly traded companies will report their net margins both quarterly (during earnings releases and in their annual reports. Companies that are able to expand their net margins over time will generally be rewarded with share price growth, as it leads directly to higher levels of profitability.
Input variables:
S - Sales
COGS - Cost of Goods Sold
O - Operating Expenses
I- Interest and Taxes
Output for formula:
returns the net profit margin
