Other Definitions
profit margin (dict)
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Profit MarginProfit margin is a measure of profitability. It's calculated as net income / revenue = profit margin and expressed as a percentage. For example: Suppose a company produces bread and sells it for 5 units of currency. It costs the company 3 units of currency to produce the bread and it also had to pay an additional 1 unit of currency in tax. That makes the company's net income 1 unit of currency (5 - (3 + 1)) and its revenue 5 units of currency. The profit margin therefore is (1 / 5) or 20% See also External links
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