What is the difference between profit margin , gross margin , and revenue ?

Question

What is the difference between profit margin , gross margin , and revenue ?

In: 135

Answer 1

– Revenue is the money you take in.
– Gross Profit is what’s left after expenses (payroll, rent, marketing, etc)
– Gross Margin is the percentage of revenue that is Gross Profit
– Net Profit is what’s left of your gross profit after the various governments shake you down for their cut of the action (taxes)
– Dividends are the share of net profits paid out to the owners (shareholders) of the business. Some companies like Amazon and Apple do not pay any dividends and instead keep the money in the bank to run the business when times are tough and revenues are down.