Profit margin: Difference between revisions
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A measure of the surplus of revenues over relevant costs, often expressed as a percentage of revenues. | A measure of the surplus of revenues over relevant costs, often expressed as a percentage of revenues. | ||
'''Example''' | |||
Revenues = 100 | |||
And the profit margin = 30/100 = 30%. | Costs = 70 | ||
Then the surplus (profit): | |||
= 100 - 70 | |||
= 30. | |||
And the profit margin: | |||
= 30 / 100 | |||
= 30%. | |||
== See also == | == See also == | ||
* [[Gross profit margin]] | |||
* [[Margin]] | |||
* [[Margin on costs]] | |||
* [[Net profit margin]] | |||
* [[Operating profit margin]] | |||
* [[Profit]] | * [[Profit]] | ||
* [[Profitability]] | |||
* [[Return on sales]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 20:06, 31 July 2020
Accounting.
A measure of the surplus of revenues over relevant costs, often expressed as a percentage of revenues.
Example
Revenues = 100
Costs = 70
Then the surplus (profit):
= 100 - 70
= 30.
And the profit margin:
= 30 / 100
= 30%.
