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please what is the difference between net profit margin and operating profit margin
Net profit margin = PBIT/Turnover x 100 %
I picked this formula from the notes, I thought net profit = PAT
please assist meAlso is important to show workings of the ratios?
When calculating ratios (whether for Paper F2, F3, F5, F9 or P4) the net profit always means the net operating profit (profit before tax and interest).
The reason for looking at the net profit margin is to see how well the managers are running the business. Tax is outside the direct control of the managers.
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