Net Income Margin - Meaning, Formula, Calculation & Interpretations

In this tutorial, you will learn what Net Income Margin is, its formula, calculate it using a practical example, and interpret the results. Furthermore, we will calculate the Net Income Margin in Excel using the Colgate Case Study.
You can download the Colgate Net Income Margin template from this link -
https://tinyurl.com/colgate-template

What is Net Income Margin?
--------------------------------------------
The net profit margin is the percentage of a company's earnings (also known as net profit) that remains after deducting all operating and non-operating expenses in a given period.

Formula
--------------------------------------------
Net Income Margin Formula = Net Profit/Net Sales * 100

Uses
--------------------------------------------
Using the net profit margin formula, investors can determine how much a company profits from its revenue.
If the company's net profit is less than its net sales, investors will want to know why and may investigate other important information about the company.
Similarly, if the net margin is excessive, investors must examine other details to determine why the net margin is too good to be true.
Furthermore, knowing the net margin formula tells them how much net profit a company can extract from its net revenue.

For more details, you can refer to our article - https://www.wallstreetmojo.com/net-pr...

🔗 Watch the Full Playlist Here:
   • Ratio Analysis Tutorials  
👩‍💻 Learn Step-by-Step:
📌 Part 1:    • Ratio Analysis - Meaning, Types, Step...  
📌 Part 2:    • Vertical Analysis  - Meaning, Formula...  
📌 Part 3:    • Horizontal Analysis   - Meaning, Form...  
📌 Part 4:    • Trend Analysis - Meaning, Formula, Ca...  
📌 Part 5:    • Current Ratio  - Meaning, Formula, Ca...  
📌 Part 6:    • Quick Ratio  - Meaning, Formula, Calc...  
📌 Part 7:    • Cash Ratio - Meaning, Formula, Calcul...  
📌 Part 8:    • Accounts Receivables Turnover Ratio -...  
📌 Part 9:    • Days Receivables - Meaning, Formula, ...  
📌 Part 10:    • Inventory Turnover Ratio - Meaning, F...  
📌 Part 11:    • Days Inventory - Meaning, Formula, Ca...  
📌 Part 12:    • Accounts Payable Turnover Ratio - Mea...  
📌 Part 13:    • Days Payable Outstanding - Meaning, F...  
📌 Part 14:    • Cash Conversion Cycle - Meaning, Form...  
📌 Part 15:    • Asset Turnover Ratio- Meaning, Formul...  
📌 Part 16:    • Net Fixed Asset Turnover Ratio- Meani...  
📌 Part 17:    • Equity Turnover Ratio- Meaning, Formu...  
📌 Part 18:    • Gross Profit Margin- Meaning, Formula...  
📌 Part 19:    • Operating Profit Margin- Meaning, For...  
📌 Part 20:    • Net Income Margin - Meaning, Formula,...  
📌 Part 21:    • Return on Assets (ROA) - Meaning, For...  
📌 Part 22:    • Return on Equity (ROE) - Meaning, For...  
📌 Part 23:    • Return on Owners Equity - Meaning, Fo...  
📌 Part 24:    • DuPont ROE Analysis - Meaning, Formul...  
📌 Part 25:    • Operating Leverage - Meaning, Formula...  
📌 Part 26:    • Financial Leverage - Meaning, Formula...  
📌 Part 27:    • Total Leverage - Meaning, Formula, Ca...  
📌 Part 28:    • Leverage Ratio (Debt to Equity)  - Me...  
📌 Part 29:    • Interest Coverage Ratio - Meaning, Fo...  
📌 Part 30:    • DSCR (Debt Service Coverage Ratio) - ...  
📌 Part 31:    • Bid-Ask Spread - Meaning, Formula, Ca...  
📌 Part 32:    • Trading Volume - Meaning, How to Inte...  
📌 Part 33:    • Sustainable Growth Rate - Meaning, Fo...  


Connect with us!
YouTube ►    / @wallstreetmojo  
LinkedIn ►   / mycompany  
Facebook ►   / wallstreetmojo  
Instagram ► https://www.instagram.com/wallstreetm...
Twitter ►   / wallstreetmojo