oboloo Glossary

Revenue To Net Income

oboloo Glossary

Revenue To Net Income

Revenue to Net Income – also known as the net profit margin – is a financial ratio that measures how much of the revenue earned by a business is retained as net income, or profit. It is calculated by dividing the company’s net income (after taxes and expenses) by its total revenues. A higher ratio indicates greater profitability and lower costs relative to revenues. The revenue to net income ratio helps businesses evaluate their performance against competitors and analyze overall financial health.