[...] shows how much profit is generated on every dollar of sales.
Net Profit Margin
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7. ANALYSIS OF THE INCOME STATEMENT opic will be discussed in detail in Reading 27 [Financial Analysis Techniques].
Income Statement Ratios
The following operating profitability ratios measure the rates of profit on sales (profit margins).
<span>Net Profit Margin shows how much profit is generated on every dollar of sales.
Net income is earnings after tax but before dividends (EBIT - interest - taxes). It should be based on earnings from the company's continuing o
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