Net Income Margin
2 July 2021
Net Income Margin (also referred to as return on sales or net profit margin) measures how much profit a company makes for each dollar in revenue. While the net profit will give us the actual amount of money earned, the net income margin gives us a percentage. This in turn provides us with a measure we can now use to compare companies or business units.
Net income margin is an important indicator measuring how efficient a company (or business unit) is and how well it is able to control its costs.
Net Income Margin = (Net Income/ Revenues) x 100
This indicator is included in the book: Key Performance Indicators – the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.
Related Articles
How Generative AI Will Change The Jobs Of Computer Programmers And Software Engineers
One of the most powerful features of language-based generative AI tools like ChatGPT, Microsoft's Copilot, or AWS Code Whisperer is the ability to create computer code.[...]
AI And Jobs: The Good And Bad News
In today's rapidly evolving digital landscape, the discussion about artificial intelligence (AI) and its impact on jobs is more relevant than ever.[...]
How Generative AI Will Change The Jobs Of Artists And Designers
By definition, artists and designers are creative people. They work in these jobs because they have talent and skills that they love to share with the world.[...]
Generative AI And Data Protection: What Are The Biggest Risks For Employers?
If you’re an employer tempted to experiment with generative AI tools like ChatGPT, there are certain data protection pitfalls that you’ll need to consider.[...]
Building Responsible AI: How To Combat Bias And Promote Equity
AI has the power to be hugely transformative, both in business and in the way we live our lives.[...]
The 20 Generative AI Coding Tools Every Programmer Should Know About
It shouldn’t come as any surprise to learn that today’s generative AI large language models (LLMs) like ChatGPT and Google Gemini are just as fluent in Python, Javascript and C++ as they are in English, Spanish or Arabic![...]
Sign up to Stay in Touch!
Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity.
He is a best-selling author of over 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations.
He has a combined following of 4 million people across his social media channels and newsletters and was ranked by LinkedIn as one of the top 5 business influencers in the world.
Bernard’s latest book is ‘Generative AI in Practice’.
Social Media