Margin and Purchasing Managers' Index: Difference between pages

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imported>Doug Williamson
(Update 4th definition.)
 
imported>Doug Williamson
(Add 2nd & 3rd definitions. Source: CIPS webpage https://www.cips.org/en-gb/who-we-are/news/uk-manufacturing-pmi-remains-stuck-at-six-and-a-half-year-low-in-july/)
 
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1. ''Accounting.''
(PMI).


Profit margins measure the surplus of revenues over relevant costs, often expressed as a percentage.
1. ''Economic indicators - US.''


Profit margins are usually expressed as a percentage of revenues, for example in the Net profit margin.
The US Purchasing Managers' Index measures new orders, production, employment and supplier deliveries, based on a survey of North American manufacturing businesses.


It is an important measure of economic activity.


Less commonly, margins can also be expressed as a margin (percentage) on relevant costs.


Gross profit measured as a percentage of costs is also sometimes known as ''markup'', an amount added to costs to determine a selling price.
The US PMI is published monthly by the US Institute for Supply Management.




2. ''Banking.''
2. ''UK''.


Net interest margin (NIM).
A similarly-structured index for UK manufacturing.


The UK PMI is published by IHS Markit and the Chartered Institute for Procurement and Supply (CIPS).


3. ''Bank lending.''


Lending margin is a percentage amount added explicitly to a market reference rate, to calculate the total rate of interest payable by a borrower.
3.


 
Similar indices for other economies.
4. ''Derivatives markets.''
 
Margin is a refundable deposit payable by market participants to protect other participants in the market against the risk of a default.
 
 
5. ''Financing.''
 
An amount implicitly built in to a total interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider.
 
 
6. ''Secured lending.''
 
An amount deducted from the value of an asset used as collateral, to calculate the maximum amount of any loan to be secured against the asset.
 
Also known as a 'haircut'.
 
 
7.  ''Project planning and management.''
 
A ''safety margin'' is an allowance for worsening of a key input or variable in a project.
 
 
8.
 
Any other difference, usually a relatively small difference compared with the amounts themselves being compared.
 
For example, forward margin in foreign exchange markets.




== See also ==
== See also ==
* [[Alternate Base Rate]]
* [[Chartered Institute for Procurement and Supply]]
* [[Bank margin]]
* [[Institute for Supply Management]]
* [[Collateral]]
* [[PMI]]
* [[EMIR]]
* [[Exchange traded]]
* [[Forward margin]]
* [[Futures]]
* [[Haircut]]
* [[Initial margin]]
* [[Maintenance margin]]
* [[Margin call]]
* [[Margin compression]]
* [[Margin of safety]]
* [[Margin on costs]]
* [[Margin risk]]
* [[Marginal]]
* [[Margining]]
* [[Markup]]
* [[Net profit margin]]
* [[NII]]
* [[NIM]]
* [[Over the counter]]
* [[Profit margin]]
* [[Stepped margin]]
* [[Sustainability Linked Loan Principles]]
* [[Tax sparing]]
* [[Variation margin]]
* [[WGMR]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]

Revision as of 14:25, 28 August 2019

(PMI).

1. Economic indicators - US.

The US Purchasing Managers' Index measures new orders, production, employment and supplier deliveries, based on a survey of North American manufacturing businesses.

It is an important measure of economic activity.


The US PMI is published monthly by the US Institute for Supply Management.


2. UK.

A similarly-structured index for UK manufacturing.

The UK PMI is published by IHS Markit and the Chartered Institute for Procurement and Supply (CIPS).


3.

Similar indices for other economies.


See also