how to measure increased profit margins
Profit margin acts as a measurement of a companyâs profitability. It measures how much a company keeps in earnings from every dollar of sales it generates. Unlike profit, which gets measured in dollars and cents, profit margin gets measured as a percentage. To measure profit margin, use the companyâs net income divided by the total sales generated. For example, the furniture store had a net income of $100,000 and generated $500,000 in sales.