The measure of a product, service, or company's profitability is its profit margin. The bigger the percentage representing the profit margin, the more profitable the company is.
Since it essentially shows a company's profitability and serves as a predictor of a company's propensity to default on debts, net profit margin is important. It displays how much profit is made for every dollar of goods or services sold as a substitute for efficiency.
However, a small company's healthy profit margin often falls between 77% and 10%. Any position requiring long hours, the need to prevent and battle crime, or the need to defend others, will necessarily be challenging.
They frequently have larger overhead expenditures, which explains this.
Profit Margin =Net Income [tex]$/$[/tex]Total Sales * 100
