How to Interpret Profit Margin (Example: Tesla) The table below shows portions of the quarterly income statements of Tesla (Nasdaq: TSLA) from the first quarter of 2020 to the third quarter of 2021.

Gross margin is mainly applied to companies involved in the manufacturing of goods, such as cars, electronics, and food. Banks, for example, don’t use gross margin as a measure because they don ...

Example of Contribution Margin . Say a machine for manufacturing ink pens comes at a cost of $10,000. Manufacturing one ink pen requires $0.2 worth of raw materials like plastic, ink, and nib ...

Example of an Excess Margin Deposit . To illustrate, consider a scenario in which an investor purchases $20,000 worth of securities. To finance the purchase, ...