margin of profit


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Margin of profit

Gross profit divided by net sales. Used to measure a firm's operating efficiency and pricing policies in order to determine how competitive the firm is within the industry.

Profit Margin

A measure of how well a company controls its costs. It is calculated by dividing a company's profit by its revenues and expressing the result as a percentage. The higher the profit margin is, the better the company is thought to control costs. Investors use the profit margin to compare companies in the same industry and well as between industries to determine which are the most profitable.

margin of profit

References in periodicals archive ?
Ensure that you are selling your cards at a price which allows you to make enough money and which also gives the retailer a margin of profit - otherwise you might end up working day and night but only end up making a few pounds per week.
Despite this resumption of CNG supply for two days only, the citizens heaved a sigh of relief, while the rickshaw, taxi drivers and other vehicle owners are happy on the supply of cheap fuel that would provide them a margin of profit and earn a livelihood.
THY was one of a few airliners reaching a 10 percent margin of profit during the global financial crisis," he said.
Dealers will only be taxed on the margin of profit they make on sales after July 1.