how to find margins
Either net profit margin calculation is acceptable, although you must be consistent in your approach across firms to make an apples-to-apples comparison. You want all companies must be compared on the same basis. Option 1: Net Income After Taxes Ã· Revenue = Net Profit Margin. Option 2: (Net Income + Minority Interest + Tax-Adjusted Interest) Ã· Revenue = Net Profit Margin. Again, it is important to reiterate that, in some cases, lower net profit margins represent a pricing strategy and are not a failure on part of management.