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What is profit margin a measure of?

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Anonymous

15y ago
Updated: 8/17/2019

Profit margin is a measure of cost of goods combined with the cost of sales versus revenue from the goods sold. For example, if a retailer pays a wholesaler $1.00 for an item and the cost of selling the item is $.50 and the retail revenue from the sale is $2.00, then the profit margin for that item is 25% ($.50 gross profit divided by $2.00 revenue). The net profit is even less when the cost of such items as taxes, interest, and amortization are included in the cost algorithm.

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15y ago

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What does profit margin mean?

Profit margin means the amount of profit you make measured in a percentage. This can include:Gross Profit marginNet Profit marginMarkup Profit margin


How do you calculate a profit margin ratio?

Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue


How do you calculate profit margins?

Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues


If net profit after tax is 64000 and sales is 720000 what is the net profit margin?

Net profit margin = 64000 / 720000 * 100 Net profit margin = 8.89%


What is a net margin?

The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100


What is sales margin?

A sales margin is defined as the ratio got by dividing net profit by sales. This is one of the best indicators to measure success of your business.


What is the difference of gross profit and gross margin?

Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses


What is the average profit margin for nutritional supplements?

The average profit margin is 35%.


What is a good profit margin for an ornamental wrought iron business?

A profit margin you can live on.


What is the average profit margin for bar and grill?

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What is the difference between gross margin and profit margin?

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What is the average profit margin of the furniture industry?

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