## PROFITMARGIN

### Profit margin

**Profit margin**,

**net margin**,

**net profit margin**or

**net profit ratio**all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.

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### profit margin

#### Noun

- The ratio of net income to net sales of a company expressed as a percentage.
- For example, if a company has $10,000 net income and $100,000 net sales, then profit margin equals ($10,000 : $100,000) .10, or 10%.

*The above text is a snippet from Wiktionary: profit margin*

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and as such is available under the Creative Commons Attribution/Share-Alike License.