What are the Benefits of Profit Margin?

[Suba]

Profit margin is a calculation result in the form of a percentage of profit from sales or revenue. As a businessman or investor we must be able to read and calculate profit margin so that we can find out the profit during a certain period, as a businessman we can find out how effectively cost management can be managed and controlled. There are several types of profit margins that we need to know such as Gross profit margin, Net profit margin and Operating profit margin.

 

[Augusta]

Profit margins are used by lenders, investors, and businesses to determine a company's financial health, how well it's run, and its growth potential

 

[King Belieal]

Profit margin is used to determine how much reward you get from your efforts expended in production.