Profit margin

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Revision as of 15:02, 18 March 2015 by imported>Doug Williamson (replace LESS with minus sign.)
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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%.


See also

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