Profit Margin Ratio for Stock Market Analysis Explained

Profit Margin is calculated by taking net income and dividing it over net sales. In other words, profit divided by the total amount of money brought in. Profit Margin tells you how much of every dollar generated in sales a company actually gets to keep. It's an insight into the bottom line of a company. It suggests the financial health, management skills, and growth potential of a company. When doing market analysis, one should always compare metrics within the same industry as the benchmark for profit margin and other metrics can vary sector to sector.

***I am not a financial advisor or crypto advisor; this video is meant to be used for entertainment purposes only and represents only my personal opinions***

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