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Tip of the Day Avoid Fees

Avoid Fees - When using long-term investments as a money-earning vehicle, it is wise to remember that any returns that are made on that money must deduct any fees paid...

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Profit Margin

Definition: The percent of sales that result in profits.  They can either be talked about in "gross margins" or "net margins."

TeenAnalyst Advice: This would be the percentage of profits a company receives for their revenues.  For example, if I sold candy for $1.00 and it cost me $0.20 to make that candy, I would have $0.80 of profit.  My profit margin would be 80%.

A gross margin refers to sales minus cost of goods sold.

A net margin refers to sales minus cost of goods sold minus expenses.

 

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