profitmargin
Profit margin is a financial metric that indicates what percentage of revenue remains as profit after costs are deducted. It is commonly reported as net profit margin, but other margins such as gross margin and operating margin are used to assess profitability at different stages of the income statement.
Formulas: net profit margin = net income / revenue; gross margin = (revenue − cost of goods sold) / revenue; operating
Example: a company has revenue 100; cost of goods sold 60; operating expenses 25; taxes 5. Net
Use and interpretation: higher margins indicate greater profitability per dollar of revenue, reflecting pricing power, cost