Profit margin

Indicator of profitability. The New York Times Financial Glossary
The ratio of earnings available to stockholders to net sales. Determined by dividing net income by revenue for the same 12-month period. Result is shown as a percentage. The New York Times Financial Glossary

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profit margin profit margin margin

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   Net profit as a percentage of sales or capital. Sometimes known as return on sales, or return on capital.

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profit margin UK US noun [C]
ACCOUNTING, COMMERCE the difference between the total cost of making and selling something and the price it is sold for, or between the total amount of money a company receives from sales and the total cost of producing all its products and services. The profit margin is often expressed as a percentage: »

The company averages profit margins of 70%.

high/low profit margins »

Other mid-size businesses, especially those with low profit margins, have similar objections.

cut/improve profit margins »

Weak domestic demand has forced prices lower and cut profit margins.

gross/net profit margin »

But while printers carry gross profit margins of 15% to 20%, the margin on ink is 50%.

Financial and business terms. 2012.

Look at other dictionaries:

  • Profit margin — Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.[1] Net profit Margin = (Net Income / Revenue) x100 The profit… …   Wikipedia

  • profit margin — profit margins N COUNT A profit margin is the difference between the selling price of a product and the cost of producing and marketing it. The group had a net profit margin of 30% last year …   English dictionary

  • profit margin — See: margin Category: Business, LLCs & Corporations Nolo’s Plain English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009 …   Law dictionary

  • profit margin — profit .margin n the difference between the cost of producing something and the price at which you sell it …   Dictionary of contemporary English

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  • profit margin — ► NOUN ▪ the amount by which revenue from sales exceeds costs in a business …   English terms dictionary

  • profit margin — the amount that the price of a product or service is raised above its cost in order to provide a gross profit. Glossary of Business Terms indicator of profitability. The ratio of earnings available to stockholders to net sales. Determined by… …   Financial and business terms

  • Profit Margin — A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings. Profit margin is very useful when comparing companies… …   Investment dictionary

  • profit margin — noun the ratio gross profits divided by net sales (Freq. 3) • Syn: ↑margin of profit, ↑gross margin • Hypernyms: ↑ratio * * * noun, pl ⋯ gins [count] : the difference between the cost of buying or making something and the price at which it is… …   Useful english dictionary

  • profit margin — Gen Mgt the amount by which income exceeds expenditure. The profit margin of an individual product is the sale price minus the cost of production and associated costs such as distribution and advertising. On a larger scale, the profit margin is… …   The ultimate business dictionary

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