What a good profit margin is depends on your exact business. Some types of businesses, like software companies, will naturally have a higher (thus, better) profit margin than others, like restaurants.

What’s A Good Gross Profit Margin To Target? Gross profit margin is a relative figure. As a result, comparing it across industries is generally unhelpful since there's so much variance.

But what really is a good profit margin for retailers? Below covers the points to take into consideration when valuing a company's margins. Key Takeaways.

Gross Profit Margin: Formula and Calculation. Using the following formula, you can easily calculate gross profit margin: Gross Profit Margin = (Revenue – Cost of Goods Sold) / Revenue x 100 ...

Columnist John D. Wagner explains why gross profit margin should not rise or fall with sales and reasons that it could.

A good profit margin varies by industry, but typically, a higher margin indicates better profitability. It’s essential to benchmark against industry averages for a more accurate assessment. Q.

What Is a Good Coffee Shop Profit Margin?. Coffee shops brought in approximately $10 billion in 2011, according to First Research. While the largest chains, such as Starbucks and Caribou, ...

Profit margin analysis offers insight into how well a company generates and retains money. A company's margins are its earnings expressed as a ratio or a percentage of sales.

Netflix's gross profit margin Netflix's gross profit margin. OK, it’s time to put all this theory to work with a real example. Netflix (NFLX 1.24%), the market-leading video-streaming service ...

In general, the higher the profit margin %, the better. If its too low, for instance below 10%, your business becomes vulnerable to changes within your market or reduced sales that could result in ...

But if you use profit margin to compare companies in the same sector, you can get a pretty good understanding of which ones are more profitable than others. As a word of warning: certain one-time ...