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Is net profit Margin the the ratio of (profit before interest & tax) and sales. or (profit after interest & tax) and sales?
net profit is profit less all expenses..
after deducting expenses from gross profit we get NET PROFIT..but in the course note of this website, how net profit is written (profit before interest and tax) by sales?
dnt confuse yourself with it..
there will be no info about tax or interest in that questionand which calculator will you use in exam. give me the model no. because i am quite confused. i want to use a scientific calculator to simplify x^23 like operation but it has alphabets.
you can use both figures NET PROFIT (before tax and after interest) AND PBIT (before tax and interest).As to anticipate the companys margin of net profit means ‘ net profits % of sales normally for better analysis pbit is most appropriate figure because it exclude the tax figure which fluctuate every year and doesnt have any effect on the companys operations and activities (sales) .but in the exam you may have one of them and may be both depends on the scenerio. but this is the basic reason behind this figure. any correction will be greatly appericiated!
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