A. Net Profit Percentage of Sales

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Net profit percentage of sales is a profitability ratio that measures an organization's profitability by determining the net income amount from net profit and revenue. It is calculated by taking the net profit and dividing it by the total revenue or sales, then multiplying by 100 to get a percentage.

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a.

Net profit percentage of sales

The net profit percentage of the sales is a profitability ratio that measures the organization's
profitability. Thus determine the amounts of net income, that amount is determined from the net
profit and revenue.

Net profit percentage=(Net profit / salesturnover )× 100

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