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How is net profit margin calculated? Some weighted average or is it net profit of every company divided by revenue of every company?
by Ekaros 2y ago
How is net profit margin calculated? Some weighted average or is it net profit of every company divided by revenue of every company?
- throwaway2037 2y agoThis article will provide some insight: https://insight.factset.com/sp-500-reporting-higher-net-profit-margin-quarter-over-quarter-for-q1 https://insight.factset.com/sp-500-reporting-higher-net-prof... In short, yeah, it depends. You need to carefully look at each data source and decide what exactly they mean by "net profit %" for an index.