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Glossary › profit margin

Trading glossary · fundamentals

profit margin

How much of each rupee or dollar a company takes in that it keeps as profit.

The fuller meaning

Net profit divided by revenue, as a percentage: the share of each unit of sales kept as profit. Comparing margins over time and with peers shows pricing power and cost control better than profit alone.

profit margin.

Related words

adoption · analyst estimate · balance sheet · Bank of Japan · beat · bond · book value · business cycle · cash flow · central bank