Profit margin calculation

To calculate profit margin, you need to divide the company's net income by its revenue and multiply the result by 100% to express it as a percentage.

Here's an example:

Suppose a company has the following financials for the year:

Revenue: $100,000

Net income: $10,000.

To calculate the profit margin, you would need to divide the net income by the revenue and multiply the result by 100%:

Profit margin = Net income / Revenue * 100%            

                       = $10,000 / $100,000 * 100%            

                       = 10%Therefore, the company's profit margin is 10%.