Sunday, April 24, 2011

Profit Margin

Profit Margin

What Does It Mean?
What Does Profit Margin Mean?
A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings.

Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. Profit margin is displayed as a percentage; a 20% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales.

Google Profit Margin: 26.80%

Microsoft Corporation Profit Margin: 33.25%

Intel Corporation Profit Margin: 24.60%

Pfizer Profit Margin: 16.46%

American International Group Profit Margin: 52.00%

The Coca-Cola Company Profit Margin: 54.99%


ConocoPhillips Profit Margin: 3.84%

Chevron Corporation Profit Margin: 9.80%

BP Profit Margin: 6.63%

Royal Dutch Shell Profit Margin: 6.74%

Exxon Mobil Corporation Profit Margin: 8.79%


Medco Health Solutions Profit Margin: 2.24%

Universal Health Services Profit Margin: 2.38%

Coventry Health Care Profit Margin: 4.97%

Tenet Healthcare Corporation Profit Margin: 3.22%

Kliphnote: So much for the "evil" oil and health care care company's reaping huge profits.





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