Investment Analysis

Margin Compression

Definition

What is Margin Compression?

A decrease in a company's profit margin.

Example in practice

Price competition causes gross margin to fall.

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The evaluation of economic, industry, company, and financial information to estimate an investment's value.

The use of mathematical models, statistics, and structured data to evaluate investments.

The degree to which reported profit reflects sustainable operations and is supported by cash flow.

A trade or series of trades creating the appearance of activity without a genuine change in beneficial ownership.

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