Morningstar Quantitative Ratings for Stocks are generated using an algorithm that compares companies that are not under analyst coverage to peer companies that do receive analyst-driven ratings.
James McWhinney is a long-tenured Investopedia contributor and an expert on personal finance and investing. With over 25 years of experience as a full-time communications professional, James writes ...
\(\text{Net profit margin (\%)}=\frac{\text{Net profit}}{\text{Sales revenue}}\times100\) For example, a business that knows its net profit and sales revenue can calculate its net profit margin as ...