Course 204:
Different Types of Profit Margins
In this course
1 Introduction
2 Types of Margin
3 How Margins Interact

Ultimately, every business is trying to make money. There are various ways to measure a company's profitability, but the most basic is profit margin. Margin is an easy concept to understand: It's the percentage of a company's revenue that is left after expenses are paid, calculated by dividing profit (revenue minus expenses) by revenue. But there are actually three types of margin that come in handy when analyzing a stock, each based on a different measure of profit and each useful in its own way.

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