Information about Net Margin
Profit margin, Net Margin or Net Profit Ratio all refer to a measure of profitability. It is calculated using a formula and written as a percentage or a number.
Margin is mostly used for internal comparison. It is difficult to compare accurately the net profit ratio for different entities. Individual business' operating and financing arrangements vary so much that entities are bound to have different levels of expenditure, that comparison of one with another can have little meaning.
For example, suppose a company produces a loaf of bread and sells it for 10 units of currency. It costs the company 6 units of currency to produce the bread and it also had to pay an additional 2 units of currency in tax.
That makes the company's net income 2 units of currency (10 - 6, before tax, then minus 2 for tax). Since its revenue is 10 units of currency, the profit margin would be (2 / 10) or 20%.
Profit margin is an indicator of a company's pricing policies and its ability to control costs. Differences in competitive strategy and product mix cause profit margin to vary among different companies.
..... Click the link for more information.
Margin is mostly used for internal comparison. It is difficult to compare accurately the net profit ratio for different entities. Individual business' operating and financing arrangements vary so much that entities are bound to have different levels of expenditure, that comparison of one with another can have little meaning.
For example, suppose a company produces a loaf of bread and sells it for 10 units of currency. It costs the company 6 units of currency to produce the bread and it also had to pay an additional 2 units of currency in tax.
That makes the company's net income 2 units of currency (10 - 6, before tax, then minus 2 for tax). Since its revenue is 10 units of currency, the profit margin would be (2 / 10) or 20%.
Profit margin is an indicator of a company's pricing policies and its ability to control costs. Differences in competitive strategy and product mix cause profit margin to vary among different companies.
See also
External links
- Yahoo! Finance - Stock Screener - By profit margin
- Stock Screener - Highest Profit Margin on MSN Money
- Calculating Profit Margin with Excel - Download an Excel spreadsheet that calculates profit margin for you.
Profitability is a technical analysis term used to compare performances of different trading systems or different investments within one system. The following definition was published in the journal Technical Analysis of Stocks & Commodities Magazine:[1]
..... Click the link for more information.
..... Click the link for more information.
In mathematics, a percentage is a way of expressing a number as a fraction of 100 (per cent meaning "per hundred"). It is often denoted using the percent sign, "%". For example, 45 % (read as "forty-five percent") is equal to 45 / 100, or 0.45.
..... Click the link for more information.
..... Click the link for more information.
currency is a unit of exchange, facilitating the transfer of goods and/or services. It is one form of money, where money is anything that serves as a medium of exchange, a store of value, and a standard of value. A currency is the dominant medium of exchange.
..... Click the link for more information.
..... Click the link for more information.
Economic policy
Monetary policy
Central bank Money supply
Fiscal policy
Spending Deficit Debt
Trade policy
Tariff Trade agreement
Finance
Financial market
Financial market participants
..... Click the link for more information.
Monetary policy
Central bank Money supply
Fiscal policy
Spending Deficit Debt
Trade policy
Tariff Trade agreement
Finance
Financial market
Financial market participants
..... Click the link for more information.
Revenue is a business term for the amount of money that a company receives from its activities in a given period, mostly from sales of products and/or services to customers.
..... Click the link for more information.
..... Click the link for more information.
In finance, a financial ratio is a ratio of selected values on an enterprise's financial statements. There are many standard ratios used to evaluate the overall financial condition of a corporation or other organization.
..... Click the link for more information.
..... Click the link for more information.
In business, operating margin is the ratio of operating income (operating profit in the UK) divided by net sales, usually presented in percent.
(In millions)
..... Click the link for more information.
Example
The Coca Cola Company
Consolidated Statements of Income[1](In millions)
..... Click the link for more information.
For the television series, see Profit (TV series)
Profit generally is the making of gain in business activity for the benefit of the owners of the business...... Click the link for more information.
Gross profit margin is a financial ratio used to assess the profitability of a firm's core activities, excluding fixed costs.
The general calculation is
The gross profit margin is related to the net profit margin, which assesses the profitability of an organisation
..... Click the link for more information.
The general calculation is
The gross profit margin is related to the net profit margin, which assesses the profitability of an organisation
..... Click the link for more information.
Markup is a term used in marketing to indicate how much the price of a product is above the cost of producing and distributing the product. It can be expressed as a fixed amount or as a percentage. There are numerous variations of each.
..... Click the link for more information.
..... Click the link for more information.
This article is copied from an article on Wikipedia.org - the free encyclopedia created and edited by online user community. The text was not checked or edited by anyone on our staff. Although the vast majority of the wikipedia encyclopedia articles provide accurate and timely information please do not assume the accuracy of any particular article. This article is distributed under the terms of GNU Free Documentation License.
Herod_Archelaus
