Gross Profit Margin:
$$ \text{Gross Profit Margin}=(\text{Gross Profit}/\text{Revenue})*100 $$
Explanation**:** Gross Profit Margin measures the percentage of revenue that exceeds the cost of goods sold. It indicates how efficiently a company is producing and selling its products.
Net Profit Margin:
$$ \text{Net Profit Margin}=(\text{Net Profit}/\text{Revenue})*100 $$
Explanation**:** Net Profit Margin represents the percentage of profit a company retains from its revenue after deducting all expenses, including operating costs, interest, and taxes.
Both ratios are expressed as percentages and provide valuable insights into a company's profitability. A higher gross profit margin indicates efficient production, while a higher net profit margin reflects effective management of overall expenses and taxes.