Definition
A Profit Margin is a financial ratio used to calculate the percentage of profit a company produces from its total revenue, indicating the efficiency at generating profits.
Usage and Context
Profit margin measures the percentage of profit a company makes from its total revenue.
Frequently asked questions
What is the profit margin ratio?
The profit margin ratio calculates the percentage of profit a company makes from its total revenue.
What is profit margin used to calculate?
Profit margin calculates the percentage of profit a company makes from its total revenue, indicating financial efficiency.
What is profit margin percentage ratio?
The profit margin percentage ratio calculates the percentage of profit a company makes from its total revenue.
Related Software
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Benefits
Profit margin measures the percentage of revenue that exceeds the costs of production, indicating financial health.
Conclusion
Profit Margin measures the percentage of revenue exceeding production costs.
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