Business Insights—Net Profit to Sales RatioThis window displays comparisons of net profit for each month of the selected fiscal periods. The top half of the window shows amounts in a table format, the bottom half displays a line graph to represent the comparison. Net Profit to Sales Ratio is calculated as follows:Net Profit to Sales Ratio = Net Profit divided by Sales
■ Green indicates an increase in the net profit to sales from the prior period. This could be the result of decreased expenses or increased sales prices.
■ Red indicates a decrease in the net profit to sales from the prior period. A diminishing margin means the profit on individual sales has decreased (for example, because sales are higher on discounted items) or the associated expenses are increasing.
■ Blue means there has been no change in the net profit to sales from the prior period.