To use the net profit formula, you subtract all your operating expenses, cost of goods sold and taxes, leaving net profits of $45,000. Divide $45,000 by $275,000 to get a net profit ratio of 16% ...

Net profit margin or net profit ratio is a value that measures a company's profitability, which can help managers analyze company performance. Net Profit Margin Basics.

Profitability ratios measure how successful a company is at making money for its investors. ... The most common margin ratios are gross margin, operating margin, and net profit margin.

These profitability ratios compare investments in assets or equity to net income. Those measurements can indicate a company's capability to manage these investments. Return on Assets (ROA) ...

Summary. In this post I want to talk about profitability, which is a good indicator of a company's quality and a key driver of dividend growth. I’ll cover return on equity, net return on capital ...

NOV Profit Margin (Quarterly) data by YCharts As that chart notes, National Oilwell Varco has consistently had the highest profit margin in the sector. This tells us that it does a better job than ...