trunkswd said:
From Jason Schreier: "Seeing a lot of misunderstanding about this. Profit margin is the percentage of revenue that is kept as profit. A 3% margin means that for every $100 you make, you're spending $97 and keeping $3. Margins don't reflect how much money you're making; they reflect how efficient the business is. "A business with 3% margins could be making millions of dollars and doing totally fine. But if you're part of a company like Microsoft, which has divisions with 40%+ margins, then it's much harder to convince the bean-counters to keep making big investments in your biz" |
But that is a profit margin..... She never says that, she said a "accountability margin".
I think there has to be a reason for that word use, instead of profit margin, or net profit or some such (like operating margin).
You don't use creative language unless you want to mislead.
If every other business uses "profit margin" and you choose not too, there is a reason for it.
Ei. its probably worse than 3%.
