[lbo-talk] corporate profits?

[Mark Rickling]

Margin is the ratio of profits to revenue. There are different
measures of profitability depending on what expenses are included or
not -- net profits, gross profits, EBITDA, etc. -- and thus different
margins (gross margin, net margin, etc.) Seems like you're talking
about net margin, that is net profits divided by net revenue, the
"bottom line" on the income statement divided by the "top line."

Out of the office so don't have any datasets in front of me, but 1-2%
seems low. Might be a good figure for retail, but certainly in
hospitals, the industry I follow, a more typical profit margin these
days is 5%+.

On Thu, Dec 17, 2009 at 2:07 PM, shag carpet bomb <shag at cleandraws.com> wrote:
> if a company earns 900 million in revenue with 90 million or so profit, the
> rest expenses and taxes, what is that called?
>
> poking around, i get the impression it's not called a profit rate or a
> profit margin. could be misunderstanding, though.
>
> and in any event, i seem to recall doug posting something here indicating
> that the typical large, public corporation had about 1-2% profits --
> whatever that meant, actually. Is that correct?
>
> shag
>
> --
> http://cleandraws.com
> Wear Clean Draws
> ('coz there's 5 million ways to kill a CEO)
>
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