Explain Profit Margin Improvement

Primary purpose of this article is to analysis how to Profit Margin improvement. Profit margin or net profit ratio all make reference to a measure of earnings. It is calculated by finding the net profit as a percentage of the revenue. Profit margin is really a ratio of profitability calculated as net gain divided by revenues, or perhaps net profits divided by means of sales. It measures how much of the many dollar of sales an organization actually keeps in earnings. It is very helpful when comparing companies inside similar industries. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. Calculation Theory is: Profit Margin= Net Profit/Revenue, where Net Profit = Revenue – Cost.