Margin - Business concept of the day

Margin - Business concept of the day

Business Development

GlobalLinker Staff

GlobalLinker Staff

27 Sep 2018, 14:43 — 1 min read

Definition: The margin is the profit gained from a product or service after all expenses for selling that product or service are covered. A negative margin i.e. cost of good sold exceeding total revenue results in a loss. It is typically measured in percentage basis.


Example: The fast food retailer settled on a model of business growth with low margins while making a play on higher volumes.

 

Business Insight: Gross profit margin measures the difference in a company's revenues and its cost of goods sold. 

 

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