Compute Ratios from Raw Statements
The only way to truly learn ratios is to compute them yourself. You'll be given the raw numbers from a real company's statements and the formula, then you type the answer. Get instant feedback and a plain-English interpretation of what each ratio actually tells you.
~25 min·6 ratios·Beginner to Intermediate
Ratio 1 of 6: Net Profit Margin
Score: 0/0Profitability
Net Profit Margin
Net Profit Margin = Net Profit ÷ Revenue × 100
Pull these from Tata Consultancy Services's FY24 statements:
Net Profit (PAT)₹43,650 Cr
Revenue₹2,40,000 Cr
%
Compute it yourself before checking, that's the whole point. A calculator is fine; the goal is knowing which numbers to combine.
Net Profit Margin · 1/6