Also known as Return on Sales, this value is the Net Income divided by Sales for the same period and expressed as a percentage. This is one of the best indicators of the company's efficiency because net profit takes into consideration all expenses of the company. Investors want the net profit margin to be as high as possible.
This is one of the best indicators of the company's efficiency because net profit takes into consideration all expenses of the company. Investors want the net profit margin to be as high as possible. Rising margins are seen as a positive signal although high margins do tend to attract the interests of competitors.
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