Net profit margin ratio tells the amount of net profit on 100% of turnover a business has earned.
On the other hand, the return on investment is perhaps the most important ratio of all. This is a
good measure of profitability because it combines the effects of profit margin and asset turnoverIt measures how efficiently profits are being generated from the assets employed in the business.
The owner determines the business's relative strengths and weaknesses through this ratio. The
formula is-