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profit margin

American  

noun

  1. the percentage that profit constitutes of total sales.


Etymology

Origin of profit margin

First recorded in 1925–30

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

That could cut into a company’s profit margin or decrease consumer spending.

From Los Angeles Times • Jun. 23, 2026

Analysts reduced earnings expectations and profit margin forecasts as sales growth hasn’t accelerated as expected.

From Barron's • Jun. 18, 2026

The other major worry for investors is Super Micro’s single-digit profit margin, which the company has struggled to grow due to higher costs and intense competition from peers such as Dell.

From Barron's • Jun. 10, 2026

XPeng’s recent gross profit margin expansion also indicate an improving product mix and better cost control, he says.

From The Wall Street Journal • Jun. 8, 2026

He could undercut his competitors and increase his profit margin.

From "Atonement" by Ian McEwan

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