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profit margin is a measure of profitability thatamp;#39;s calculated by dividing the net income by revenue or the net profit by sales companies often analyze two types of profit margins gross profit margin which typically applies to a specific product or line item and net profit margin which typically represents the profitability of an entire company return on investment Roi is a simple calculation used to determine the expected return of a project or activity in comparison to the cost of the investment typically shown as a percentage
