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

  1. 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
and as such is available under the Creative Commons Attribution/Share-Alike License.

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