Comments on: Net Profit Margin http://business-accounting-guides.com The Fast and Simple Guide to Accounting Mon, 21 May 2012 16:52:30 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Kenneth Meunier http://business-accounting-guides.com/net-profit-margin/comment-page-1/#comment-1125 Kenneth Meunier Sun, 23 Oct 2011 22:39:37 +0000 http://business-accounting-guides.com/?page_id=96#comment-1125 Hi Mark - Yes, ROI is certainly a critical measure for investments, and also for business! In fact in business it is net income/assets, so you will see companies that have higher net profit margins with higher ROI (assuming equal assets). See also <a href="http://business-accounting-guides.com/return-on-assets/" rel="nofollow">return on assets</a> where companies with higher profit margins tend to have higher ROI. Kenneth Hi Mark -

Yes, ROI is certainly a critical measure for investments, and also for business! In fact in business it is net income/assets, so you will see companies that have higher net profit margins with higher ROI (assuming equal assets). See also return on assets where companies with higher profit margins tend to have higher ROI.

Kenneth

]]> By: mark crole http://business-accounting-guides.com/net-profit-margin/comment-page-1/#comment-1123 mark crole Sun, 23 Oct 2011 18:09:19 +0000 http://business-accounting-guides.com/?page_id=96#comment-1123 Always been told in economics 101 class at High School that 99% of small companies work on a net profit within the 8-10% range. Generally they don't even work on a profit percentage but on a return of their investment outlay. As long as they get a better return than they would get from a bank, they are happy as Larry on laughing gas! Always been told in economics 101 class at High School that 99% of small companies work on a net profit within the 8-10% range. Generally they don’t even work on a profit percentage but on a return of their investment outlay.

As long as they get a better return than they would get from a bank, they are happy as Larry on laughing gas!

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