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LSDefine

Simple English definitions for legal terms

profit margin

Read a random definition: unitization

A quick definition of profit margin:

Profit margin refers to the amount of money a company makes after subtracting the cost of producing and selling its products or services. It is the percentage of revenue that remains as profit. For example, if a company sells a product for $100 and it costs $70 to produce and sell, the profit margin would be 30%. This means that for every $100 in revenue, the company makes $30 in profit. A higher profit margin is generally seen as a good thing, as it means the company is making more money relative to its costs.

A more thorough explanation:

Definition: Profit margin is the percentage of revenue that a company keeps as profit after deducting all the expenses. It is calculated by dividing the net profit by the revenue and multiplying the result by 100.

Example: If a company has a revenue of $100,000 and its expenses are $80,000, then its net profit is $20,000. The profit margin would be calculated as follows:

Profit Margin = (Net Profit / Revenue) x 100

Profit Margin = ($20,000 / $100,000) x 100 = 20%

This means that the company keeps 20% of its revenue as profit after paying all the expenses.

Another Example: A bakery sells cakes for $20 each. The cost of ingredients and labor to make one cake is $10. The bakery sells 100 cakes in a month, which means its revenue is $2,000. The total cost of making 100 cakes is $1,000. Therefore, the net profit is $1,000. The profit margin would be:

Profit Margin = (Net Profit / Revenue) x 100

Profit Margin = ($1,000 / $2,000) x 100 = 50%

This means that the bakery keeps 50% of its revenue as profit after deducting the cost of making the cakes.

The examples illustrate that profit margin is the percentage of revenue that a company keeps as profit after paying all the expenses. It is an important metric for businesses to measure their profitability and financial health.

profit and loss statement | Progressive discipline

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JumpySubsequentDolphin
11:12
@KnowledgeableRitzyWasp: that sounds nice wasp
Dkk
11:12
Congrats on the move.
lilypadfrog
11:12
@JumpySubsequentDolphin: she says hi and she loves you. me too btw
lilypadfrog
11:12
Thanks
lmao you guys are great
JumpySubsequentDolphin
11:12
@Eggan: aw exciting I miss NYC. i think im going at some point soon ? as soon as it’s not freezing
11:12
yayyy pls come and meet up with me
lilypadfrog
11:13
lsd meetup!
11:13
we are finally doing the one that didnt happen yay
lilypadfrog
11:13
jumpy u should coordinate with trip she’s planning on going too I think
lilypadfrog
11:14
@Eggan: cold season was beating our asses
11:14
lichrally… except i dont get sick
11:14
i either get super sick or not sick at all so i havent gotten the cold in years
wasp when hes a vector for infectious disease
11:15
except u didnt get me sick :> yayy
JumpySubsequentDolphin
11:15
@lilypadfrog: oooh I’ll text her
JumpySubsequentDolphin
11:16
one day i will have a place in soho 🙌
Im so excited for scholarship negotiation
lilypadfrog
11:17
flex offender
lilypadfrog
11:17
Just kidding have fun dude get those full rides
Okay but fr, i’m lookin forward to it. I didnt realize how expensive law school was until i see the actual dollars and cents + scholarships coming back
JumpySubsequentDolphin
11:18
flex offender is so good im gonna steal that
It’s deadass scary, and i really want to lower the amount
@JumpySubsequentDolphin: r u a girl or a guy? Cuz i never know whether to say my brother in islam or my sister in islam
JumpySubsequentDolphin
11:19
im a girl
JumpySubsequentDolphin
11:19
my brotha in islam 🙌
My sista in islam🙏🏽
lilypadfrog
11:43
should I get my hair trimmed or eyebrows done today
lilypadfrog
11:43
I need to do both
lilypadfrog
11:43
hair I’ve been pushing off for way longer
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