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.


So for example:  
So for example:  
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if Revenues = 100, and Costs = 70.
if Revenues = 100, and Costs = 70.


Then the surplus (profit) = 100 LESS 70 = 30.
Then the surplus (profit)  
 
= 100 LESS 70  
 
= 30.
 
 
And the profit margin
 
= 30/100


And the profit margin = 30/100 = 30%.
= 30%.




== See also ==
== See also ==
* [[Profit]]
* [[Profit]]

Revision as of 16:14, 26 November 2014

Accounting.

A measure of the surplus of revenues over relevant costs, often expressed as a percentage of revenues.


So for example:

if Revenues = 100, and Costs = 70.

Then the surplus (profit)

= 100 LESS 70

= 30.


And the profit margin

= 30/100

= 30%.


See also