Victoria’s net profit margin has declined by around 4%, compared to last year.


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Victoria's net profit margin has declined by around 4%, compared to last year.
asked Oct 05 '12 at 05:21 Praba Ganeshan New member

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Is there such a thing as net profit margin? Is profit margin not the same as net income (revenue minus tax and expenses)?


Victoria's profit margin is around 4 percent less than last year.

link comment edited Oct 05 '12 at 07:47 Peter Guess Expert

Peter's math is a little off, but net is redundant in any case. In addition to Peter's offering, you might try:


When compared to last year, Victoria's profit margin declined by about 4 percent.


According to GAAP (Generally Accepted Accounting Principles):


Profit (or more accurately Gross Profit) = gross profit is the difference between revenues from sales and cost of goods sold (COGS). Gross profit is calculated by adding together all revenues from operating activities and subtracting costs associated with generating those revenues.  Gross Profit is the funding source for meeting additional expenses (such as taxes and writeoffs) and adding to savings in the company's retained earnings account.


Profit Margin = profit represented as a percentage of revenue is known as the profit margin. The gross profit margin shows the proportion of revenues that are left over after considering the cost of goods sold. 


Net Income (often called the "bottom line") = represents the amount of money remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total revenue. This is the number the public thinks of as profit.

link comment edited Oct 05 '12 at 14:56 Jeff Pribyl Grammarly Fellow

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