
Margins
Margins refer to the difference between the cost of producing a product or service and the price at which it is sold, representing potential profit. Gross margin focuses on revenue minus direct costs, while net margin considers all expenses, including operating costs and taxes. High margins indicate more profit per sale, providing financial cushion and flexibility. Margins are essential for assessing a company's profitability and operational efficiency, guiding pricing strategies and cost management to ensure sustainable growth.