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.
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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.
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margin of profit

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
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.
The prices, the ministry said, are based on the average price of 20 liters of red gasoil, which stood at LL26.452, and a margin of profit for operators.
Under the current pricing method, dubbed a ''full-cost'' pricing system, utilities are basically allowed to set electricity charges for consumers by adding a certain margin of profit on top of personnel, fuel, facility repair costs.
PPS is a fixed-rate system, and SNFs don't have a huge margin of profit to work with, so vendors will have to be willing to negotiate.
It said the price takes into consideration a sound margin of profit for the owners of the generators, as well as other operation costs.
The International Islamic University Islamabad and its constituent units shall also benefit from this facility which shall also give the banks great margin of profit.
"The margin of profits has diminished in the cases of high interest rates on deposits.