Margin ratios
- Gross profit margin (47)
- Ratio of gross profit (revenue – cost of goods sold) to revenue
- Increased by:
- Raising price or reducing production cost
- Net profit margin (48)
- The profit generated after considering all expenses
- Operating profit margin (49)
- Operating profit/revenue
- Pre-tax margin (50)
- Pretax accounting profit/revenue
Note:
- Financial ratios
- Turn-over ratios, Stability ratios, Business risk ratios