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Comment: Re:Profit Margins in Publishing (Score 1) 207

by Carbonite (#26527765) Attached to: Tech Publisher O'Reilly Slashes Jobs

Going from a 50% margin to a 2% margin is a sign of poor management...

50% is gross profit margin, while the 2% is net profit margin. To get from gross to net, you have to take into account rent, labor, taxes, depreciation, interest payments, insurance and lots of other expenses. Perhaps there is some poor management, but 2% net profit margin doesn't necessarily indicate this.

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