Youve probably heard the term profit margin at some point, but what does it mean?...

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Accounting

Youve probably heard the term profit margin at some point, but what does it mean? What exactly is a profit margin and how is it calculated? Once we see it, what is it telling us? Is it good? Is it bad? How would you know? Ive never heard of a profit margin. Explain it to me in laymans terms. Tell me how to calculate it from financial reports, what it means, and how I can tell if its good or bad.

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