Profit Margin Formula
Profit margins are as vital to businesses as they are to financial investments and stocks. Similarly, profit margins form an essential element of accounting practices. Margins also mean different things in these three spheres: commerce, accounting, and investing.
The net profit margin is equivalent to the revenue minus costs, divided by the revenue, which looks like this:
Net profit margin = revenue – costs/revenue or
Net profit margin = revenue / profit x 100
This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.
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