Profit margin - Revision history

Conservative: /* Low, medium and high profit margins for a business */

2024-02-21T08:54:10Z

Low, medium and high profit margins for a business

Conservative: /* Low, medium and high profit margins for a business */

2024-02-21T08:06:19Z

Low, medium and high profit margins for a business

Conservative at 08:06, February 21, 2024

2024-02-21T08:06:00Z

Conservative at 07:58, February 21, 2024

2024-02-21T07:58:09Z

Conservative at 07:57, February 21, 2024

2024-02-21T07:57:40Z

Conservative at 07:56, February 21, 2024

2024-02-21T07:56:54Z

Conservative: Created page with "According to Investopedia: {{Cquote|Profit margins are financial metrics that are used to measure a business or company's profitability. A gross '''profit margin''' can be us..."

2024-02-21T07:56:36Z

Created page with "According to Investopedia: {{Cquote|Profit margins are financial metrics that are used to measure a business or company's profitability. A gross '''profit margin''' can be us..."

New page

According to Investopedia:
{{Cquote|Profit margins are financial metrics that are used to measure a business or company's profitability.

A gross '''profit margin''' can be used to determine a particular item's profitability, but net profit margins are a better measure of overall profitability.
The net profit margin is key as it measures total sales, less any business expenses, and then divides that number by total revenue.

The best net profit margin for your business depends on what industry you're business is in, which means you shouldn't compare your margins to companies in other industries.<ref>[https://www.investopedia.com/articles/personal-finance/093015/whats-good-profit-margin-new-business.asp What’s a Good Profit Margin for a New Business?]<ref>}}

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 First, some companies are inherently high-margin or low-margin ventures. For instance, grocery stores and retailers are low-margin. They have high expenses, as they need to purchase inventory, employ corporate employees and labor workers, facilitate shipping and distribution, and rent bigger facilities as their sales grow. But low-margin goods, like food and some consumer products, are usually easier to sell. A highly competitive market, like the rideshare war between Uber and Lyft, can also create thin margins.
-By contrast, businesses like consulting firms and software-as-a-service (SaaS) companies generally have high gross margins. These businesses have fewer operating costs, no inventory, and require less [https://www.brex.com/journal/startup-funding startup capital] to launch. Companies that sell high-dollar products, like jewelry stores, can also fall into this category. Read more here about the [https://www.lendio.com/news/small-business-outlook/most-profitable-businesses/ most profitable and least profitable industries].</ref>}}
+By contrast, businesses like consulting firms and software-as-a-service (SaaS) companies generally have high gross margins. These businesses have fewer operating costs, no inventory, and require less [https://www.brex.com/journal/startup-funding startup capital] to launch. Companies that sell high-dollar products, like jewelry stores, can also fall into this category.<ref>[https://www.brex.com/journal/what-is-a-good-profit-margin What is a good profit margin], Brex.com</ref>}}
 == References ==
 {{reflist}}
 [[Category:Business]]

@@ Line 16: / Line 16: @@
 First, some companies are inherently high-margin or low-margin ventures. For instance, grocery stores and retailers are low-margin. They have high expenses, as they need to purchase inventory, employ corporate employees and labor workers, facilitate shipping and distribution, and rent bigger facilities as their sales grow. But low-margin goods, like food and some consumer products, are usually easier to sell. A highly competitive market, like the rideshare war between Uber and Lyft, can also create thin margins.
-By contrast, businesses like consulting firms and software-as-a-service (SaaS) companies generally have high gross margins. These businesses have fewer operating costs, no inventory, and require less [https://www.brex.com/journal/startup-funding startup capital] to launch. Companies that sell high-dollar products, like jewelry stores, can also fall into this category. Read more here about the [https://www.lendio.com/news/small-business-outlook/most-profitable-businesses/ most profitable and least profitable industries].</ref>
+By contrast, businesses like consulting firms and software-as-a-service (SaaS) companies generally have high gross margins. These businesses have fewer operating costs, no inventory, and require less [https://www.brex.com/journal/startup-funding startup capital] to launch. Companies that sell high-dollar products, like jewelry stores, can also fall into this category. Read more here about the [https://www.lendio.com/news/small-business-outlook/most-profitable-businesses/ most profitable and least profitable industries].</ref>}}
 == References ==
 {{reflist}}
 [[Category:Business]]

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 The best net profit margin for your business depends on what industry you're business is in, which means you shouldn't compare your margins to companies in other industries.<ref>[https://www.investopedia.com/articles/personal-finance/093015/whats-good-profit-margin-new-business.asp What’s a Good Profit Margin for a New Business?]</ref>}}
 == References ==
 {{reflist}}
 [[Category:Business]]

← Older revision		Revision as of 07:58, February 21, 2024
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	The best net profit margin for your business depends on what industry you're business is in, which means you shouldn't compare your margins to companies in other industries.<ref>[https://www.investopedia.com/articles/personal-finance/093015/whats-good-profit-margin-new-business.asp What’s a Good Profit Margin for a New Business?]</ref>}}		The best net profit margin for your business depends on what industry you're business is in, which means you shouldn't compare your margins to companies in other industries.<ref>[https://www.investopedia.com/articles/personal-finance/093015/whats-good-profit-margin-new-business.asp What’s a Good Profit Margin for a New Business?]</ref>}}
		+	== References ==
		+	{{reflist}}
		+	[[Category:Business]]

← Older revision		Revision as of 07:56, February 21, 2024
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	The net profit margin is key as it measures total sales, less any business expenses, and then divides that number by total revenue.		The net profit margin is key as it measures total sales, less any business expenses, and then divides that number by total revenue.

−	The best net profit margin for your business depends on what industry you're business is in, which means you shouldn't compare your margins to companies in other industries.<ref>[https://www.investopedia.com/articles/personal-finance/093015/whats-good-profit-margin-new-business.asp What’s a Good Profit Margin for a New Business?]<ref>}}	+	The best net profit margin for your business depends on what industry you're business is in, which means you shouldn't compare your margins to companies in other industries.<ref>[https://www.investopedia.com/articles/personal-finance/093015/whats-good-profit-margin-new-business.asp What’s a Good Profit Margin for a New Business?]</ref>}}

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 According to Investopedia:
-{{Cquote|Profit margins are financial metrics that are used to measure a business or company's profitability.
+{{Cquote|Profit margins are financial metrics that are used to measure a [[business]] or company's profitability.
 A gross '''profit margin''' can be used to determine a particular item's profitability, but net profit margins are a better measure of overall profitability.