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Bookmark or Share- Profit Margin | Definition, Primary Levels, Importance, & FormulaProfit margin is any profit a company generates that goes to its owners, who may choose to distribute the money to shareholders as income, or allocate it back into the business to finance further company growth.
- Profit Margin: Definition, Types, Uses in Business and InvestingProfit margin gauges the degree to which a company or a business activity makes money. Expressed as a percentage, profit margin indicates how many cents of profit have been generated for each...
- Profit Margin: How to Calculate It, What It Tells YouProfit margin is the percentage of revenue (income from sales) your business keeps as profit. It is one of the most common metrics used in accounting to determine your...
- Profit Margin: Definition, Types, Formula, and Impact - The BalanceThe profit margin is a ratio of a company's profit (sales minus all expenses) divided by its revenue. The profit margin ratio compares profit to sales and tells you how well the company is handling its finances overall.
- Profit Margin - Corporate Finance InstituteThe three main profit margin metrics are gross profit margin (total revenue minus cost of goods sold (COGS) ), operating profit margin (revenue minus COGS and operating expenses), and net profit margin (revenue minus all expenses, including interest and taxes).
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