Profit Margin Ratio Calculator
Profit margin ratio is the very useful for measuring the revenue generated with each dollar of sales. The profit margin ratio method is widely used by many investors to measure the company's ability to convert every sale into net income.
Formula to calculate profit margin ratio is given by:Let us consider a simple example,Company Alpha has a net income of $600 and $1000 in net sales. Calculate it's profit margin ratio.
Solution:Given:
Net Income = $600
Net Sales = $1000
Formula, Profit Margin Ratio = Net Income / Net Sales
= 600/1000
= 0.6
Therefore, the profit margin ratio of company Alpha is 0.6 or 60%Similarly, enter both of the parameters in the below online profit margin ratio calculator and then click calculate to find the answer.
Latest Calculator Release
Average Acceleration Calculator
Average acceleration is the object's change in speed for a specific given time period. ...
Free Fall Calculator
When an object falls into the ground due to planet's own gravitational force is known a...
Torque Calculator
Torque is nothing but a rotational force. In other words, the amount of force applied t...
Average Force Calculator
Average force can be explained as the amount of force exerted by the body moving at giv...
Angular Displacement Calculator
Angular displacement is the angle at which an object moves on a circular path. It is de...