Profit Margin
Asset symbol is not found or was delisted
Indicator Description
Profit Margin | = | Net IncomeRevenue | X | 100 |
Profit Margin In A Nutshell
For example, if a company has a 10% profit margin, they are earning $0.10 for every $1.00 of revenue. So as easy as it seems, the larger that number the more money the company is earning per dollar of revenue. Typically you want to see this number be higher compared to competition, because they are earning money more efficiently.
Profit margin is key when evaluating a business and is calculated by net income divided by revenue. Expressed in a percentage, this measures how much money the company makes for every dollar of revenue earned.
Closer Look at Profit Margin
If you have been studying the stock market and businesses, then you will know that cash is king and the life blood of an organization. When looking to invest in a business, profit margin is something you want to keep your eye on because this is how the company makes money and continues to grow. Obviously you have to look at other aspects of the business, but profit margin needs to be healthy. Investing in a business that sold computers and sold thousands, but only had one percent profit margin, that may not be a good investment because the margin is low but if the cost of a part of that product increases, they may lose the profit margin and it becomes negative.
When starting a business, profit margin may be low because you are just trying to sell and get a brand built, but that cannot be sustained into the future. If there are small profit margins, take a step back and ask yourself why that is and if the company is doing anything about it, because that is a risk in your portfolio.
There are a multitude of different margins you need to look at but this is certainly of the more important ones. However, you have to take it into account with the others because that will give you a well rounded opinion. Reach out to an investing community because they can help you in your research and give you ideas on how they implement this data point. Also, feel free to reach out to your investing professional as they can help to guide you in the right direction. Profit margin is key to a successful business and without a healthy margin, future growth could be limited.
Other Suggestions
| O | Realty Income Corp | Company |
| OCCIN | OFS Credit | Company |
| OSCNX | Oppenheimer Main Street | Mutual Fund |
| OEF | iShares SP 100 | ETF |
| OOI | SP Global 100 | Index |
| OM | MANTRA | Cryptocurrency |
| OJUSX | Orange Juice | Commodity |
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
| LTC | Litecoin | |
| STETH | Staked Ether | |
| LINK | Chainlink | |
| XLM | Stellar | |
| CRO | Cronos |
Explore Investing Ideas
You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did you try this?
Run Bond Analysis Now
Bond AnalysisEvaluate and analyze corporate bonds as a potential investment for your portfolios. |
| All Next | Launch Module |
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |