Net Profit Margin
Net profit as percentage of revenue.
Formula
Net Profit Margin = (Net Profit ÷ Revenue) × 100
Real World
Apple's net profit margin consistently sits above 25%, meaning for every £1 of iPhone or service revenue, over 25p remains as profit after all costs.
Exam Focus
When evaluating margins, compare to industry averages or previous years — a bare calculation scores low.
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