Profit Margin

• Financial Performance
• Profitability Analysis
• Business Strategy

Profit Margin is a financial metric that measures the amount of money a company retains per dollar of revenue after accounting for the costs of goods sold (COGS) and other expenses. It’s expressed as a percentage of revenue and is used to assess a business’s financial health and operational efficiency.

Problem it addresses

Understanding the profitability of a company’s operations is crucial for making informed business decisions and for strategic planning.

How it helps

Analyzing profit margins helps businesses identify areas where they can reduce costs, increase prices, or optimize operations to improve profitability. High profit margins indicate good financial health and operational efficiency, enabling businesses to invest in growth opportunities, innovate, and provide value to shareholders.