Profit Margins

Gross, operating and net margins explained, what they reveal about a business model, and real margins for software, chip, beverage and retail giants.

How much of each dollar stays?

Revenue tells you how much a company sells. Margins tell you how much of each sales dollar it keeps as profit. Two companies with the same revenue can be very different businesses if one keeps 40 cents of every dollar and the other keeps 3 cents.

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The rest of this lesson, its chart examples and quiz are part of Investing School. Start free with Stock Market Fundamentals and the first lesson in every category.