the.com/profit margin

The percentage that separates a thriving business from an expensive hobby.

means The slice of revenue left over as profit after all costs are paid, usually expressed as a percentage of sales.

from 'Profit' traces back through French to Latin profectus, meaning 'progress' or 'advance' — the sense of material gain grew out of the idea of moving forward. 'Margin' comes from Latin margo, meaning edge or border, like the blank space at the side of a page. Put together in commercial English, the phrase pictures profit as the narrow edge left over at the boundary between what you earn and what you spend — the thin strip where a business actually gets ahead.

formula
net income divided by revenue, times 100
grocery stores
often run on 1-3 percent margins
software companies
can exceed 80 percent margins easily
revenue vs profit
high sales mean nothing if margin is zero
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