How to Calculate Net Profit Margin in SAP S/4Hana

Making the most of your SAP S/4Hana data

What is Net Profit Margin?

Net profit margin is the ratio of net profit to total revenue.

Net profit is calculated by subtracting all costs from total revenue.

Net profit margin is a good metric to use when comparing your company's performance to that of other companies in your industry.

For example, if you're a software company and you have a net profit margin of 20%, you're doing better than the average software company.

If you're a software company and you have a net profit margin of 10%, you're doing worse than the average software company.

How do you calculate Net Profit Margin in SAP S/4Hana?

It can be difficult to calculate Net Profit Margin directly inside of SAP S/4Hana; that's where Causal comes in.

Causal is a modelling tool which lets you build models on top of your SAP S/4Hana data. You simply connect Causal to your SAP S/4Hana account, and then you can build formulae in Causal to calculate your Net Profit Margin.

What is Causal?

Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.

In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Net Profit Margin. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.

A comparison of formulae in Excel and Causal

When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.

A gif showing how users can adjust model inputs, and how they're reflected in dashboards

Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Net Profit Margin.

A gif showing how you can build visuals in Causal

Get started today with Causal

Start building your own Net Profit Margin models, and connect them to your SAP S/4Hana data.