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Financial Analysis

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  • April 15, 2023
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Net Profit on Turnover

A profitability ratio that reflects a company’s efficiency as to generating net profits from its operations. It relates net profits to the cost of goods sold (COGS) and operating expenses. In calculation, it is net profits divided by sales revenue:

Net profit on turnover = net profits/ sales revenue

This financial ratio is also known as net profit to sales ratio or net profit margin.


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