Profit margin refers to the revenue a company makes after paying COGS. It's calculated by taking revenue minus the cost of goods sold. The difference is shown as a percentage of revenue.

While it can be slightly confusing to those new to finance, leverage and margin are both cut from the same cloth. The difference is that you express leverage as a ratio and margin as a percentage.

Add 0.7 to the price of what the good cost you. The number you receive represents the amount you will need to sell the item for a 30% profit margin. The percentage of a company's revenue that exceeds ...