profit margin

profit margin definition - finance
A ratio that shows the percentage of profits that are earned on sales. When the term “profit margin” is used, it usually refers to a gross profit margin. See also gross profit margin, operating profit margin, and net profit margin.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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