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 ?
We are also excited about a soundtrack of this magnitude which is expected to generate a higher margin of profit for our Company.
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.
And since the margin of profit for pricey lotions is high, Connett said, manufacturers easily recoup the cost of the promotion.
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.