BNET Business Dictionary
Business Definition for: Profit Margin
- the amount by which income exceeds expenditure. The profit margin of an individual product is the sale price minus the cost of production and associated costs such as distribution and advertising. On a larger scale, the profit margin is an accounting ratio of company income compared with sales. The profit margin ratio can be used to compare the efficiency and profitability of a company over a number of years, or to compare different companies. The gross profit margin or operating margin of a company is its operating, or gross, profit divided by total sales. The net profit margin or return on sales is net income after taxes divided by total sales.
- sales less cost of sales, expressed either as a value or as a percentage of sales value. The profit margin may be calculated at different stages, hence the terms gross profit margin and net profit margin. The level of profit reported is also influenced by the extent of the application of accounting conventions, and by the method of product costing used, for example, marginal or absorption costing.
Wiktionary Definition for: Profit Margin
- The ratio of profit to cash flow of a company expressed as a percentage.
Additional Resources
- Sunpower's Profit Margin Likely to Plunge in 2009
- Jon Jacksonn submits: We have seen a few warnings lately about the price drop of solar panel in 2009. The latest one is from Sunpower Corp. SPWR. CEO Thomas Werner warned of a price drop of 10-20% in 2009. Citigroup analyst Arcuri also warned of a price drop averaging...
- External links 2008-09-05
- Gross Profit Margin
- Your business' gross profit margin is one of its key performance indicators. The gross profit margin gives an indication on whether the average mark up on goods and services is sufficient to cover expenses and make profit. Use information from your business' annual profit and loss statements to input into...
- Tools & templates 2009-01-01
- CLSA CUTS OUTLOOK FOR CHINA MOBILE'S EBITDA PROFIT MARGIN TO 53%
- AsiaInfo Services 05-30-2005 CLSA Cuts Outlook for China Mobile's EBITDA Profit Margin to 53% HONG KONG, May 30, 2005 SinoCast via COMTEX -- On May 27, Credit Lyonnais Securities Asia CLSA, a leading brokerage and investment banking house i AsiaInfo...
- Research articles 2005-05-30
- Profit Margin Calculator
- This calculator can help you determine the selling price for your products to achieve a desired profit margin. By entering the wholesale cost, and either the markup or gross margin percentage, it calculates the required selling price and gross margin.
- Tools & templates 2008-01-01
- PERNOD RICARD : 2006/07 ANNUAL RESULTS - Strong sales and profit margin growth
- 2006/07 ANNUAL RESULTS Strong sales and profit margin growth Sales: EUR 6,443 million (+9.1%*) Operating profit from ordinary activities: EUR 1,447 million (+21%*) Profit from ordinary activities Group share: EUR 833 million (+24%**) Net profit Group share: EUR 831 million (+30%)...
- Research articles 2007-09-20
- Net Profit Margin
- For a business to survive in the long term it must generate profit. Therefore the net profit margin ratio is one of the key performance indicators for your business. Use information from your business' annual profit and loss statements to input into the tool.
- Tools & templates 2009-01-01
- PERNOD RICARD: Strong sales and profit margin growth in the 2006/2007 1st half-year
- Strong sales and profit margin growth in the 2006/2007 1st half-year - Operating profit from ordinary activities: up EUR 886 million (+20%*) - Net profit from ordinary activities: up EUR 529 million (+18%**) Press release - Paris, 8 March 2007 The Board of Directors...
- Research articles 2007-03-08
- Capgemini shares soar on upbeat profit margin outlook
- PARIS AFP — Shares in French information technology services group Capgemini stormed ahead of the pack as the market hailed its outlook for a hefty jump in operating profit margin for 2005, dealers said. Capgemini shares soared 6.52 percent to 27.79 euros in midday trades on the Paris stock...
- Research articles 2005-02-24
- HOME APPLIANCE DISTRIBUTORS SEE LOW PROFIT MARGIN
- AsiaInfo Services 11-15-2004 Home Appliance Distributors See Low Profit Margin BEIJING, Nov 15, 2004 SinoCast via COMTEX -- China's three major home appliance distribution chains Gome, Suning and Dazhong have initiated rounds of price wars in Beijing market. People doubt whether...
- Research articles 2004-11-15
- Dairy Farmers Not Seeing Higher Profit Margin from Increased Milk Prices.(Originated from The Press-Enterprise, Riverside, Calif.)
- SAN JACINTO, Calif.--Jun. 30--For Jack Tuls, the good news is that his dairy is making a profit for the first time in two years. The bad news is that his profit margin -- 8 cents on each gallon of milk before taxes -- is a third of...
- Research articles 1996-06-30
- JetBlue lowers forecast for operating profit margin
- JetBlue Airways Corp. on Thursday lowered its operating profit margin forecast to between 13 percent and 14 percent for the fourth quarter, citing lower average fares, especially in the Western United States. JetBlue, a discount airline operating from New York's John F. Kennedy International Airport, said in a...
- Research articles 2003-12-05
- Auction Mills Profit Margin for December Is Over $500,000, Announces The OTC Report
- The OTC Report recommends Auction Mills Incorporated (OTC: AUML), which announces their preliminary sales figures for the last month of the year. As of December 11, 2005, approximately $100,000 has been generated through the sale of Xboxes. This combined with the company's anticipated additional Xbox sales and on-line auctions will...
- Research articles 2005-12-12
- China Stocks to Watch for Wednesday, December 13: LWLL Launches Exporting Division Anticipating Additional Revenues of $5 million and 10% Net Profit Margin from this New Division in 2007.
- M2 PRESSWIRE-13 December 2006-China Venture Forum: China Stocks to Watch for Wednesday, December 13: LWLL Launches Exporting Division Anticipating Additional Revenues of $5 million and 10 Net Profit Margin from this New Division in 2007C1994-2006 M2 COMMUNICATIONS LTD RDATE:13122006 Shanghai, China...
- Research articles 2006-12-13
- China Stocks to Watch for Wednesday, December 6: LWLL Launches Exporting Division Anticipating Additional Revenues of $5 million and 10% Net Profit Margin from this New Division in 2007.
- M2 PRESSWIRE-6 December 2006-China Venture Forum: China Stocks to Watch for Wednesday, December 6: LWLL Launches Exporting Division Anticipating Additional Revenues of $5 million and 10 Net Profit Margin from this New Division in 2007C1994-2006 M2 COMMUNICATIONS LTD RDATE:06122006 Shanghai, China...
- Research articles 2006-12-06
- Education IRAs slow to take off.(financial companies reluctant to offer education individual retirement accounts due to product's low profit margin)
- Financial companies have been slow to offer the Education IRA individual retirement account because of the product's low profit margin. The maximum contribution is only $500 per year, which, according to American Century Funds, will generate revenues of just $4 annually. The company plans to offer Education IRAs as a...
- Research articles 1998-02-02
- Thorough refrigerant management procedures boost profit margin. (Milner Airco)(includes related articles)
- Milner Airco is a successful heating and ventilation firm, in Charlotte, NC, with service sales representing 32% of the area's residential market. Through the company's refrigerant management services, the company has increased its profit margin. Refrigerant handling procedures, including refrigerant recovery, are handled more efficiently with the use of a...
- Research articles 1995-08-21
- Taiwan Semiconductor Manufacturing Company Has the Largest Dedicated Semiconductor Foundry Capacity Which Has Resulted In a Strong Profit Margin and Market Position.
- M2 PRESSWIRE-4 January 2008-Research and Markets: Taiwan Semiconductor Manufacturing Company Has the Largest Dedicated Semiconductor Foundry Capacity Which Has Resulted In a Strong Profit Margin and Market PositionC1994-2008 M2 COMMUNICATIONS LTD RDATE:08012008 Dublin - Research and Markets (http://www.researchandmarkets.com/reports/c78604)...
- Research articles 2008-01-04
- Assessing a Profit and Loss Account
- A profit and loss account (P&L) is a statement of sales income and expenditure over a specified period, and any profits or losses made. Essentially, the profit or loss is the difference between the money that comes in and the money that goes out. A P&L account does not show...
- Articles 2007-07-05
- Your Net Margin Is A Key Indicator Of Health
- Net operating margin, also known as net profit margin, is the best barometer of a company's performance. The ratio tells how well a company converts revenue from core operations into actual profit - how many cents of profit it gets from every dollar of sales. The operating margin shows how...
- White papers 2009-01-01
- Samsung says Q2'05 profit my go down
- Korean company Samsung has said that its operating profit will be lower in the second quarter of this year as compared to the operating profit in the first quarter of the year. According to the company its profit margin is under pressure because of the exKorean company Samsung has said...
- Research articles 2005-07-01
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