{"id":1147,"date":"2019-07-01T15:08:15","date_gmt":"2019-07-01T15:08:15","guid":{"rendered":"https:\/\/sage-new-clone.local\/en-au\/blog\/?post_type=sage_glossary&#038;p=1146"},"modified":"2026-02-05T20:23:13","modified_gmt":"2026-02-05T09:23:13","slug":"what-is-a-profit-margin","status":"publish","type":"sage_glossary","link":"https:\/\/www.sage.com\/en-au\/blog\/glossary\/what-is-a-profit-margin\/","title":{"rendered":"What is a profit margin?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-au\/blog\/glossary\/\" class=\"entry-header__link\">Glossary definition<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is a profit margin?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is a profit margin?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-au\/blog\/glossary\/what-is-a-profit-margin\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-profit-margin\">Profit margin<\/h2>\n\n\n\n<p>Profit margin is an accounting function used to measure the profitability of a business. Profit margin is measured by dividing the <a href=\"https:\/\/www.sage.com\/en-au\/blog\/glossary\/what-is-net-income\/\">net income<\/a> by the net sales. This is a critical element that business owners need to grasp. There are two ways to measure profit margin: <a href=\"https:\/\/www.sage.com\/en-au\/blog\/glossary\/what-is-gross-profit\/\" target=\"_blank\" rel=\"noopener noreferrer\">gross margin<\/a> and <a href=\"https:\/\/www.sage.com\/en-au\/blog\/glossary\/what-is-net-profit\/\" target=\"_blank\" rel=\"noopener noreferrer\">net profit<\/a>&nbsp;margin. Each margin measures profitability differently.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Profit margin Profit margin is an accounting function used to measure the profitability of a business. Profit margin is measured by dividing the net income by the net sales. This is a critical element that business owners need to grasp. There are two ways to measure profit margin: gross margin and net profit&nbsp;margin. Each margin [&hellip;]<\/p>\n","protected":false},"author":708,"featured_media":0,"template":"","meta":{"_sage_video":false,"footnotes":""},"tags":[208,215],"class_list":["post-1147","sage_glossary","type-sage_glossary","status-publish","hentry","tag-accounting-tips","tag-cash-flow"],"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Australia","distributor_original_site_url":"https:\/\/www.sage.com\/en-au\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/sage_glossary\/1147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/sage_glossary"}],"about":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/types\/sage_glossary"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/users\/708"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/sage_glossary\/1147\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/media?parent=1147"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/tags?post=1147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}