What is Profit Margin?
Profit margin measures what percentage of revenue your business keeps as profit. It's one of the most important indicators of financial health.
There are three types: gross margin (production efficiency), operating margin (operational efficiency), and net margin (true bottom-line profitability).
Industry Benchmarks
- SaaS: 70-80% gross, 15-25% netSaaS:
- E-commerce: 40-60% gross, 5-10% netE-commerce:
- Restaurants: 60-70% gross, 3-9% netRestaurants:
- Consulting: 50-70% gross, 15-25% netConsulting:
- Retail: 25-50% gross, 2-5% netRetail:
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