The net profit margin is one of the most important indicators of a company's financial health, and it is calculated using the formula: Net Profit Margin = (Revenue – Cost of Goods Sold – Operating Expenses Expenses – Other Expenses – Interest – Taxes) / Revenue x 100. Net Profit Margin indicates how much profit is generated per dollar of sales. However, EBITDA accounts for all production and day-to-day expenses while also adding back depreciation and amortization costs.