Difference between revisions of "Profit margin"
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According to Investopedia: | 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. | 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. | ||
Revision as of 07:57, February 21, 2024
According to Investopedia:
| “ | 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.[1] |
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