The 4 Types of Profit Margins
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The 4 Types of Profit Margins
You can calculate 4 different profit margins with the typical income statement. Gross Margin = Gross Profit / Net Sales The gross margin tells you the profitability after deducting COGS but before any other expenses. In short, it shows whether the company is selling the product above its cost. Operating Margin = Operating Income / Net Sales The ...
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