A company's operating margin is the profit it makes on a dollar of sales after accounting for the direct costs involved in earning the revenue.

A firm’s net profit margin is a key indicator of its profitability. Analyzing it can tell potential investors whether the business may be a good bet.

Gross profit margin reflects earnings after subtracting the cost of goods sold. Operating profit margin considers all overhead and operating expenses. Net profit margin reveals total earnings after ...

What’s a good profit margin for your business? There’s a quick answer to this question. A good profit margin is usually 10% or higher for most businesses, though this varies significantly by industry.