Profit Margin AnalysisProfit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Profit Margin Over Time Pattern
About Profit MarginIn a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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Home Depot Profit Margin Assessment
Based on latest financial disclosure The Home Depot has Profit Margin of 9.45%. This is much higher than that of the Consumer Cyclical sector, and significantly higher than that of Home Improvement Stores industry, The Profit Margin for all stocks is over 1000% lower than the firm.