Net Profit Margin:

Net Profit Margin:

            This ratio is a relationship between net profit (profit after interest & tax) and sales. This ratio is used to measure overall effectiveness and efficiency of business. This ratio is used to measure the overall profitability of a firm. It is a very useful ratio for the Share holders because if net profit of a business is sufficient. The net profit margin tells you how much profit a company makes for every Rupee 1 it generates in Sales. This ratio also indicates the firm’s capacity to face adverse economic conditions such as price competition, low demanding. Higher the ratio the better is the profitability.

Net Profit Margin =	Net Profit
	Net Sales