Net profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company’s total revenue. Example: The formula…

Net income margin is the net after-tax income of a business, expressed as a percentage of sales. It is used in ratio analysis to determine the proportional profitability of a business. It is especially useful…

Return on equity or return on capital is the ratio of net income of a business during a year to its stockholders’ equity during that year. It is a measure of profitability of stockholders’ investments.…