Profit margin on sales
Profit margin on sales is a margin that is calculated by dividing net income by sales; gives the profit per dollar of sales.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Profit margin on sales. Calculated by dividing net income by sales; gives the profit per dollar of sales.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
