Profit Margin
Profit Margin is a measure of profitability of a company, calculated from net income divided by revenues.
Profit Margin= Net Income \ Net Sales Revenue
It is expressed as a percentage, telling you the ability of a company to control costs. If a profit margin is, for example, 20 %, it means that company earn 0.2 $ on every $ invested.
| Related Terms: Operating Profit Margin Profit Ratio |
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