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Profit margin

• Indicator of profitability. The ratio of earnings available to stockholders to net sales. Determined by dividing net income by revenue for the same 12-month period. Result is shown as a percentage.

• Measures the percentage of each sales dollar remaining after all expenses, including financing expenses and taxes have been deducted.

• See Pre-tax Profit on Sales.

 
 

Follow this link for all the terms related to margin.

 
 Embedded terms in definition
 Earnings
Expenses
Income
Net income
Net sales
Net
Profitability
Profit
Sales
 
 Related Terms
 

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