Gross profit margin is the gross profit divided by revenue[1]. Gross profit is revenue minus the cost of the goods to the company[2]. Securis keeping 51% of th

Gross profit margin is the gross profit divided by revenue[1]. Gross profit is revenue minus the cost of the goods to the company[2]. Securis keeping 51% of the money generated by its business, after you figure in what that service first cost the company, is indeed impressive. What is also impressive though is if, as Securis' CEO suggests near the end of this[3] article, after all that their net income is only 1.4%. Is he really saying, there, that direct operating costs eat 99% of their gross margins, or is he not telling the FCC that a big chunk of change is being "spent" as operational costs on M&A and other re-directional consumables? My expertise is quickly exhausted in the subject, but... it can't all be going to kickbacks to the prisons. 1: http://www.investopedia.com/ask/answers/101314/what-are-differences-between-gross-profit-and-gross-margin.asp http://www.investopedia.com/ask/answers/101314/what-are-diff... 2: http://www.investopedia.com/terms/g/grossprofit.asp http://www.investopedia.com/terms/g/grossprofit.asp 3: http://www.prisonpolicy.org/blog/2015/06/19/securus-profits/ http://www.prisonpolicy.org/blog/2015/06/19/securus-profits/