What is the profit margin (after tax) ratio? The after tax profit margin ratio tells you the profit per sales dollar after all expenses are deducted from sales.

Answer: The operating profit margin is a type of profitability ratio known as a margin ratio. The information with which to calculate the operating profit margin ...

Analysis. Gross margin ratio measures profitability. Higher values indicate that more cents are earned per dollar of revenue which is favorable because more profit ...

Profit margin Indicator of profitability. The ratio of earnings available to stockholders to net sales. Determined by dividing net income by revenue for the same 12 ...

Also known as profit margin, the profit ratio is simply the net profits that remain after taxes are calculated and settled, divided by the sales or the ...

Definition of profit margin: Ratio of profit after taxes to cost-of-sales, often expressed as a percentage. It is one of the measures of the profitability of a firm, ...

Profit Margin View Financial ... In general, narrow profit margins indicate increased volatile earnings. ... Operating Margin; Price to Sales Ratio ...

Definition: A ratio of profitability calculated as earnings divided by revenues. It measures how much out of every dollar of sales a retail business actually keeps in ...

Express this ratio as a percentage. Gross profit margins are usually written as a percentage. Once you have the ratio for gross profit / total revenue, simply ...

... the gross profit ratio is essentially the percentage markup on ... Gross margin ratio only considers the cost of goods sold in its calculation because it ...

Gross profit margin (gross margin) is the ratio of gross profit ... net margin) is a ratio of profitability calculated as after-tax net income (net profits) ...

See Also: Financial Ratios Operating Profit Margin Ratio Net Profit Margin Margin vs Markup Adjusted Gross Income. Gross Profit Margin Ratio Definition

What It Measures. The gross profit margin ratio measures how efficiently a company uses its resources, materials, and labor in the production process by showing the ...

The profit margin is an accounting measure designed to gauge the financial health of a business or industry. In general, it is defined as the ratio of profits earned ...

Definition of profit margin: Net profit after taxes divided by sales for a given 12-month period, ... current ratio; equity; working capital; asset; EBITDA; revenue ...

Net Profit - This is the bottom-line profit after all expenses, taxes, interest, and other costs have been paid, ... What is the net profit margin ratio?

The profit margin ratio can be used to compare the efficiency and profitability of a company over a number of years, ... profit divided by total sales.

What Does Operating Margin Mean? A ratio used to measure a company's pricing strategy and operating ... Also known as operating profit margin and net profit margin.

Net profit margin ratio refers to an analytical measure derived from your company's income statement. The specific formula used is net profit margin divided by ...

... definition of profit margin from InvestorGuide.com: See Gross Profit Margin; Net Profit Margin. Search. Home; Stock Research; ... price to earnings ratio ...

Net Profit Margin Ratio indicates what is left for the owners (i.e. shareholder) as a percentage of total income or sales after accounting for all other costs such as ...

4. Explanation. Gross Profit Margin Ratio shows the underlying profitability of an organization's core business activities. A GP Margin of 40% suggests that every $1 ...

Profit margin is simply profit divided by sales. ... The difference between the gross and operating margins is the overhead cost ratio.

Gross Profit Margin and Gross Profit Ratio: What is gross profit ratio and margin? How can understanding gross margin help you better manage your business?

Net Profit Ratio Calculation | Formula | Example ... The net profit ratio is also known as the profit margin. Similar Ratios. Contribution margin

The Gross Profit Margin measures the Gross Profit in relation to the Net Sales. This will reveal how much profit remains out of each dollar of sales.

Definition of gross profit margin: ... To obtain gross profit margin, divide gross profit by sales. ... current ratio; equity; working capital; asset;

The extremely thin profit margin in the grocery business comes from the large amount of ... What Is the Difference Between Profit Rate and Profit Margin Ratio? Profit ...

A profit margin is the difference ... Also known as the margin of profit, a profit margin is simply the difference ... The profit margin ratio can be ...

Profit Margin Ratio This article will tell you all about the profit margin ratio and what it indicates for a business. While the turnover is an important ...

Stakeholders must be careful to compare apples to apples when evaluating profit margins. If used correctly, however, the profit margin is a good, quick benchmark to ...

The net profit margin is possibly the most critical of all business analytical ratios. Better known as "the bottom line," the net profit margin not only shows whether ...

Profit Margin Analysis: A profit margin ratio of 17% that for each dollar of sales that Cory's Tequila Co. generates it is contributing 17 cents to its ...

What is the gross margin ratio? The gross margin ratio is also known as the gross profit margin or the gross profit percentage. The gross margin ratio is computed by ...

Things to remember: This ratio is not useful for companies losing money, since they have no profit. A low profit margin can indicate pricing strategy and/or the ...

Related Questions

Current ratio = Current assets/Current liabilities. ... (You can see why lenders take such an interest in this ratio.) 3) Profit margin. - Read more