Profit margin is the ratio of net income to revenue. It is calculated by dividing net income by revenue.
For example, if your company earns $100,000 in revenue and has $50,000 in net income, your profit margin is 50%.
Profit margin is a very important metric because it tells you how much money your company is making on each dollar of revenue. Profit margin is also a very important metric for investors, because it shows how much money your company is making on each dollar of investment.
For example, if your company has a profit margin of 50%, and you have $1 million in revenue, your company is making $500,000 in profit. If you have $10 million in revenue, your company is making $5 million in profit.