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English definition of “profit margin”

profit margin

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%.
(Definition of profit margin from the Cambridge Business English Dictionary © Cambridge University Press)
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