Profit margin

 

Home
Site Map
Add Term
Search
About Us
Contributors

Profit margin

The difference between what it costs to produce a product or service and the selling price.

Profit margin

Operating profit as a percentage of sales (or turnover). To calculate profit margin, multiply operating profit by 100, and divide the result by turnover.Example: Company X made an operating profit of £500m on a turnover of £3,000m. Profit margin was therefore (500 x 100) / 3000= 16.66%Profit margin tells you about the underlying profitability of a company's trading activities, not whether it is actually making money for shareholders. Note that it is calculated before taking account of interest charges or tax.

Profit margin

Indicator of profitability. The ratio of earnings available to stockholders to net sales. Determined by dividing net income by revenue for the same 12-month period. Result is shown as a percentage. Also known as net profit margin.



Profit margin

Similar Matches

Unitised with profits

Unitised with profits

With-profits and investment-linked funds combined in the same contract with the choice of switching between them.


Net profit margin

Net profit margin

Net income divided by sales; the amount of each sales dollar left over after all expenses have been paid.


Excess profits tax

Excess profits tax

Additional federal taxes placed on the earnings of a business, used only in time of national emergency such as war.


Profit shifting

Profit shifting

The use of government policies to alter the outcome of international oligopolistic competition so as to increase the profits of domestic firms at the expense of foreign firms. This is a key element of strategic trade policy.


Profit

Profit

Revenue minus cost. The amount one makes on a transaction.


Further Suggestions

Directly Unproductive Profit-Seeking Activities
Not for profit
Excess profit
Profit sharing plan
profits warning
operating profit
Profit center
pre tax profit
Unitised with profit endowment
profit taking
profit before tax
Operating profit margin
Gross profit margin
paper profit
Profitability ratios
Pretax earnings or profits
Profit Range
Profitability index
Profit Table
Profit maximizing
gross profit
Windfall profit
Gross profit
Realized profit (or loss)
Profit forecast


 
All rights Reserved. Do not copy without permission.