1. If a firm has a profit margin of 30%, this means (in an accounting sense) that for every dollar in sales:
the firm generates 30 cents in costs.
the firm generates 30 cents in profit.
the firm generates 70 cents in profit.
the firm is not profitable.
2. If you are interested in buying a company (say in a leveraged buyout) you will be most interested in the company's:
1. free cash flow
2. state of incorporation
3. state of incorporation
4. corporate golf courses