Profit Margin Ratio Calculation: Step-by-Step Guide Calculating the profit margin ratio is an essential task for any business owner or investor. It gives you a clear picture of how efficiently a company is generating profits from its operations. In this step-by-step guide, we will walk you through the process of calculating the profit margin ratio and explain its importance in evaluating a company’s financial health. 1. Understand the Profit Margin Ratio The profit margin ratio is a key financial metric that measures the percentage of profit a company earns from each dollar of revenue. It shows how effectively a company controls its costs and generates profits. 2. Gather Financial Statements…