Profit margin

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Revision as of 10:40, 28 February 2018 by imported>Doug Williamson (Categorise.)
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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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