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- Dictionaryprofit margin
noun
- 1. the amount by which revenue from sales exceeds costs in a business: "we have a gross profit margin of 80 per cent"
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noun
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The ratio between turnover and profit, in other words, what percentage of turnover remains as profit for the company
Profit margin is a measure of profitability. It is calculated by finding the profit as a percentage of the revenue. The concept is widely used by corporates, businesses, and various organizations to understand their profit dynamics. Financial statements contain details of the calculation and comparison between the profit margins of past year with the current year. Thus, it is one of the key factor... Wikipedia