ArgonProconsulting

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Variations of calculating margins…

ArgonProconsulting

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Example: Margin 1 Margin 2Revenue 110 000 110 000- Expenses 100 000 100 000MARGIN (EUR) 10 000 10 000MARGIN (%) 10% 9,09%

”Finance margin” 2]

10/110 = 9,09%”Engineers’ margin” 1]

10/100 = 10%EXPENSES 100MARGIN 10

Formulas:

You should always understand the way margin has been calculated!

9 % difference!

1] The way engineers (sometimes) calculate margins2] The way finance people calculate margins

@TimoNurminiemi

http://www.linkedin.com/in/timonurminiemi

ArgonProconsulting

training

@TimoNurminiemi

http://www.linkedin.com/in/timonurminiemi

@TimoNurminiemi

http://www.linkedin.com/in/timonurminiemi

e-mail: timo.nurminiemi@kolumbus.fi