Accounting Dictionary
Profit Margin
Profit Margin is net income divided by sales.
If I sold $200,000 worth of goods and my net income was $20,000. My profit margin would be 20,000/200,000 or 10%. 10% of the money I take in will be profit.
https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/profit-margin/
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