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Company PQR reported net income of $500,000 and total revenue of $2 million. Calculate the net profit margin for Company PQR and discuss its interpretation
Company PQR reported net income of $500,000 and total revenue of $2 million. Calculate the net profit margin for Company PQR and discuss its interpretation in financial analysis. Explain the net profit margin as a measure of a company's profitability, indicating the percentage of revenue converted into net income. Discuss the significance of net profit margin in evaluating operational efficiency, profitability trends, and its implications for financial performance evaluation and competitive analysis.
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