Profit Margin can be found at any point of the income statement by using “X” Profit divided by Sales Revenue. If you desire to express the number as a percentage, multiply the number by 100. You want to see high margins. This indicates low expenses and waste.

A company with a profit margin that is too high may be skimping on product or service quality. They also may be thrifty, which can hurt a company’s long-term reputation as a quality service or product provider. Even though it’s good for your returns in the short run, if a company cuts too deeply into their quality they will eventually lose customers.

American Markets Analysis:

• Summaries of American Economic Structure
• Performance of Major
• Imports/Exports
• Federal Reserve Mandate versus Expectations
• Performance Indexes of U.S Economy
• Economically Correlated U.S Dollar Projections
• Large Trading Fund Index Sentiment Readings
• Market Wide Earnings Versus Valuations
• Fundamental Ranking of U.S Business Sectors
• Best and Worst Future Consensus Estimates
• Occasional: Firm Fundamental Strength Report
• List of Technicals to Look for While Trading