Profit Margin

Started by oswegobag, March 14, 2009, 03:21:13 PM

oswegobag

In this game, what is profit margin and how is is calculated? It does not seem to make sense to me. I am making lots of $$$ and my company value is always increasing, yet I always have a negative profit margin... It does not make sense.

Sami

Check wikipedia -> profit margin for example ..

It's calculated based on your last 3 month's results I believe it was.

blair21088

the reason it doesn't make sense to you is because aircraft purchases are considered expenses not assets. Sami has said that this will be chnaged in the future.

swiftus27

Actually profit margin, per se, doesn't really exist.

You have Gross Margin and you have Net Margin.

Gross Margin, in virtually every industry (outside services) is Sales - Cost of Goods Sold
Net Margin is Gross Margin - Fixed Costs, Losses, Expenses
(simplified form)