Margin

Margin (Definition)

Margin refers to the difference between a products or services selling price and its cost of production or to the ratio between a companys revenues and expenses.

Key aspects of margin include:

1. Can refer to gross margin, operating margin, or net profit margin
2. Expressed as a percentage of revenues
3. Used to assess profitability and pricing strategies
4. Higher margins generally indicate better efficiency and profitability
5. Can vary significantly between industries and companies
6. Important for financial analysis and decision-making
7. Understanding different types of margins is crucial for comprehensive financial assessment

Analyzing and managing margins is essential for improving profitability and competitiveness in business.