net profit ratio
Net profit ratio or Net profit margin is the total profit that a business has made in a year, minus its costs, as a percentage of sales. Working out net profit as a percentage of sales helps the business compare performance from one year to the next and to decide how efficiently it is using its plant, people and equipment.
You can calculate it using this formula:
(Net profit ÷ Revenue) x 100 = Net profit ratio %
Your task
Use this formula to calculate Cadbury’s net profit ratio in 2005 and in 2006 in the space provided in the spreadsheet. Your answer will turn green if it is correct and red if it is not.
