Business / Taxes / Profit Margin: A company's profit margin is derived by dividing its net earnings, after taxes, by its gross earnings minus certain expenses. Profit margin is a way of measuring how well a company is doing, regardless of size. For example, a $50 million company with net earnings of $10 million, and a $5 billion company with net earnings of $1 billion, both have profit margins of 20%. Profit margins can vary greatly from one industry to another, so it can be difficult to make valid comparisons among companies unless they are in the same sector of the economy.
Margin Noun Synonyms: edge, border, perimeter, periphery, rim, lip, side, brink, verge
Profit Noun Synonyms: advantage, avail, good, benefit, welfare, gain, value, interest,efulness, literary behoof
Profit Verb Synonyms: advance, further, be of profit to, benefit, promote, aid, help, be advantageous or of advantage, serve, avail, improve
Business / Finance / Profitability Ratios: Ratios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investm MORE
Business / Taxes / Net Margin: A company’s net margin, typically expressed as a percentage, is its net profit divided by its net sales. Net profit and net sales are the amounts the company has left after subtracting relevant expe MORE