What is Profit Margin?
Profit margin measures profitability. Tracking it helps ensure your business earns enough revenue to cover costs and invest in growth.
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Profit margin measures profitability. Tracking it helps ensure your business earns enough revenue to cover costs and invest in growth.
Profit margin equals gross profit divided by revenue. Product markup and margin are related but measure different parts of pricing.
Margins differ by industry. Knowing your benchmark helps reveal excess spending, weak pricing, or underperforming products.
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Businesses with low overhead or specialized services often achieve higher margins.
It informs pricing, supplier decisions, marketing budgets, and growth planning.