Gross profit margin



Margin


1. Buying with borrowed money can be very risky because both gain and loss are bigger. That is, while the potential for larger profit exists, this comes at a hefty price - the potential for bigger losses. Margin also subjects the investor to a number of unique threats such as interest payments for use of the borrowed money

2. For example, if you hold futures contracts in a margin account, you have to sustain a certain amount of margin depending on how the market values of the contracts change.

3. Gross profit margin (which is the difference between income and expenses) is one compute of a company's performance.


Gross profit margin

The gross profit margin is a measurement of a company's manufacturing and distribution effectiveness during the manufacture process. The gross profit tells an investor the percentage of revenue / sales left after subtracting the cost of goods sold


Revenue - Cost of Goods Sold
= ---------------------------------
Revenue


The gross profit margin proportion tells us the profit a business makes on its cost of sale, or cost of goods sold. It is a very easy idea and it tells us how much gross profit per £1 of turnover our business is earning
  1. is extremely useful when comparing against the margins \of previous years.
  2. A 33% gross margin means products are marked up 50% and so on.

4 comments:

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BIGPROFIT BUZZ said...

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rajnish singh said...

The market gapped up at the open for the second time this week. The rally cleared the SPX 1940 level at the open, and we placed a Minor wave 2 label at yesterday’s SPX 1928 low. Minor wave 3 appears to be underway from that level. Today’s SPX 1948 high came within one point of the OEW 1956 pivot range. Which we feel is the market’s next objective. In fact, SPX 1953-1956 looks to be a good range. Thus far, Minor 3 has rallied 20 points without any meaningful pullback. We would expect one when the SPX hits the 1956 pivot range, if not before. Keep an eye on Germany overnight and in the first couple of hours of trading.

Short term support is at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum hit quite overbought today and then dipped some."
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