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Remember the NPM

NPM stands for Net Profit Margin, a very important metric of financial performance. I wrote about it in three consecutive essays (Romancing the NPM, A Whole New Dimension, and The Comeback Kids) beginning on March 5, 2010. Why am I writing about it now? Head of the Fed, Ms. Janet Yellen, presented a surprisingly dovish […]

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The Comeback Kids

I introduced the subject of Net Profit Margin, NPM, two weeks ago because first quarter earnings reports were quite good, but that wasn’t good enough for many analysts…they were looking for signs of better sales growth. Everyone knows that sales growth is vital to a company’s long-term viability. Increased sales normally lead to rising earnings […]

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A Whole New Dimension

Net Profit Margin, NPM, which I introduced last week, shows the after tax profit that a company makes, in percent, for each dollar of sales it receives. It directly relates bottom line and top line performance in one simple figure and, therefore, is a wonderful measure of profitability. Take La-Z-Boy, Inc., LZB, yesterday’s top stock […]

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