Term
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Definition
| indicate if an organization is making a satisfactory profit |
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Term
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Definition
| indicate if an organization is a good risk for a lender or investor |
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Term
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Definition
| indicate if an organization can pay its bills |
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Term
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Definition
| indicate if an organization is making the most of its assets |
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Term
| Gross profit margin percentage |
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Definition
| "gross margin"- reflects the basic profitability of products or services |
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Term
| Operating profit margin percentage |
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Definition
| "operating margin"- reflects a more comprehensive measure of a company's ability to generate profits |
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Term
| Net profit margin percentage |
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Definition
| "net margin"- reflects how much out of every sales dollar the company gets to keep after everything else has been paid for; people, vendors, lenders, government |
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Term
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Definition
| reflects how effective the company is at using assets to generate profit |
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Term
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Definition
| reflects what percentage of profit owners/shareholders make for every dollar of equity invested in the company |
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