01-11-2013, 09:39 PM
Sales is a dollar amount.
Margin is a percentage. Sales minus cost divided by total sales. It can't exceed 100% but it can be below zero.
Gross margins are after you subtract the cost of the sales. Operating margin is after you subtract the overhead (rent, salaries, etc) in addition to cost of sales. Net margin or profit margin is after you subtract all of the above and interest, taxes and depreciation. Basically, how much of each sales dollar goes to the bottom line.
Margin is a percentage. Sales minus cost divided by total sales. It can't exceed 100% but it can be below zero.
Gross margins are after you subtract the cost of the sales. Operating margin is after you subtract the overhead (rent, salaries, etc) in addition to cost of sales. Net margin or profit margin is after you subtract all of the above and interest, taxes and depreciation. Basically, how much of each sales dollar goes to the bottom line.