Profit margin
Profit margin is the ratio that measures net income per dollar of sales and is calculated by dividing net income by sales.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Profit margin. This ratio measures net income per dollar of sales and is calculated by dividing net income by sales.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
