AccountingHub
A2

Profit margin

Move net income or net sales and watch the margin recompute.

Each sales dollar: 46.4¢ kept as profit, 53.6¢ consumed by expenses.

Net income ÷ Net sales
46.4%
3,785 ÷ 8,150

is net income divided by net sales: the share of each sales dollar that survives every expense. FastForward earned $3,785 on $8,150 of revenue — a margin of 46.4%, high because a one-person consulting business has almost no cost of goods sold. Compare margins within one industry and over time, not across unrelated businesses.