Are you interested in learning how to assess a business's financial health? Today, we'll be looking at the net profit margin (NPM), a crucial metric used to evaluate a company's profitability. We'll explain what it is, how to calculate it, and why it matters to stakeholders such as owners, managers, and investors.

Profit margins are key to understanding a business's financial viability, and the net profit margin provides a particularly clear picture of a company's efficiency. We'll walk through the steps to calculate net profit margin and see how it can be used to evaluate a business's financial performance over time or against competitors.

In this video, we'll follow the story of Jake Redman, the owner of a small independent bookstore called Book Worms, as he learns how to calculate his store's net profit margin and uses it to make important business decisions. By the end of this video, you'll have a solid understanding of net profit margin and how it can be used to evaluate a company's financial success. Get ready to become a pro at analysing business finances!