Posted by: A. C. Cockerill | December 28, 2012

Factoid #40: Profit v.s. Profit Margin – Part 2

Factoid #40: Profit v.s. Profit Margin – Part 2

Profit margin = (profit / revenue) x 100

= measure of profitability

= percentage of the revenue an individual gets to keep after his or her bills are paid

A higher profit margin means the individual creates wealth at a faster rate.



  1. How would I relate profit margin with writing?

    • Hi Jolyse, I believe for writers it means that the more “fire” (value, your essence) you put into your fiction or nonfiction, the faster your writing business will grow. Using accounting ratios can help you track your progress. Cheers, Ashley

  2. good one. and necessary to understand for us small business types

    • Thank you very much, Louise, and you’re so right. We are small business owners. Also as artists, profit is a reflection of how much we have pursued individual excellence in our art, our writing. Cheers, Ashley

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