Profit margin: Difference between revisions

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''Accounting''.  
''Accounting''.  
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 if Revenues = 100, and Costs = 70.
 
Then the surplus (profit) = 100 LESS 70 = 30.
'''Example'''
And the profit margin = 30/100 = 30%.
 
Revenues = 100  
 
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%.


See also