profit margin

noun

1. the percentage that profit constitutes of total sales.

Word History and Origins

Origin of profit margin¹

First recorded in 1925–30

Example Sentences

But the good news for stocks is that “historically, profit margins have shown a strong positive correlation with fiscal deficits, with a roughly one-year lead — higher deficits tend to precede higher margins,” they say.

Read more on MarketWatch

Some companies found it difficult to pass price increases on to resistant customers, however, and that reduced their profit margins.

Read more on MarketWatch

“But if we’re looking at ways to make gas more affordable in the short term, I think we should be looking more at the refiner profit margins.”

Read more on Los Angeles Times

The company reported a record adjusted gross profit margin of 13.7% for the year and $1.3 billion in cash and liquidity.

Read more on Barron's

AMD’s nascent challenge to Nvidia’s dominant position in AI chipmaking stalled earlier this month when its third-quarter earnings report included an outlook for profit margins that failed to impress Wall Street.

Read more on Barron's