No matter the size of your business or the industry youβre in, keeping tabs on your profitability is key.Β
While having a good understanding of how much revenue youβre bringing in is important, it doesnβt tell the full story of your businessβs financial health.
Thatβs because if youβre spending more money than youβre making, youβll eventually run out of steam and lack the capital needed for long-term growth.
One useful metric you can use to assess your financial position is net profit margin.
This article covers the ins and outs of net profit margin, including how to calculate it, examples, and how to improve it.