Profit Margin

Profit margins are compute by separating profits by total operating proceeds. Thus they express profits as a percentage of totals in service revenue. The most significant margin is the net profit margin. The net profit edge for the Timberland Company for 2000 was:

In basics, profit limitations reproduce the firm's capability to produce a project or examination at either a low cost or a high price. Profit mar- gins are not direct events of profitability because they are based on total operating revenue, not on the investment made in assets by the firm or the evenhandedness investors. Different industries will have distinctly different profit margins. For example, the PC industry has shifted more towards a commodity business, decrease profit margins. Timberland's net profit margin at 11 percent was within the range for the retail industry, where price is often how firms compete. However, here again it is tremendously important to compare the profit border with historical company data and within the context of any other changes that may affect it.