Profit Margin Definition

noun

The ratio of net income to net sales of a company expressed as a percentage.

For example, if a company has $10,000 net income and $100,000 net sales, then profit margin equals ($10,000 : $100,000) .10, or 10%.
Wiktionary
Synonyms:
  • gross margin
  • margin of profit

Other Word Forms of Profit Margin

Noun

Singular:
profit margin
Plural:
profit-margins

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profit margin