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Profit margin |
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Profit marginThe difference between what it costs to produce a product or service and the selling price.Profit marginOperating 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 marginIndicator 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 MatchesUnitised with profitsUnitised with profitsWith-profits and investment-linked funds combined in the same contract with the choice of switching between them. Net profit marginNet profit marginNet income divided by sales; the amount of each sales dollar left over after all expenses have been paid. Excess profits taxExcess profits taxAdditional federal taxes placed on the earnings of a business, used only in time of national emergency such as war. Profit shiftingProfit shiftingThe 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. ProfitProfitRevenue minus cost. The amount one makes on a transaction. Further SuggestionsDirectly Unproductive Profit-Seeking ActivitiesNot 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 |
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