Profit margin is a performance indicator of a commercial company that represents the main source for covering the circulation expenses, being in the same time a weight balance in the intermediate administration balance-sheet of commercial companies.
This indicator shows the earning obtained as margin from goods selling, that has a balance in the operating activity of a commercial company. The analysis of gross margin’s influence to the economic-financial equilibrium of commercial company is done through the “direct-costing” method.
Margin, profit margin, intermediate administration balance sheet