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profit margin
profit margin
Noun
pl: profit margins
This term is primarily used in business, accounting, and financial analysis to describe the efficiency of a company's pricing strategy and cost management. It carries a neutral, technical tone and is standard in both formal corporate reports and casual business discussions.
While often used interchangeably with "profit," the margin specifically emphasizes the ratio or percentage rather than the absolute currency amount. A "thin" or "tight" margin suggests a precarious financial position where small cost increases could lead to losses, whereas a "healthy" or "wide" margin indicates strong profitability and stability.
Meanings
Related Words
markupmarginlossrevenuecostexpenseprofitearningsincomenet profitgross profitoverheaddiscountpricebottom linefiscalfinancialaccountingbalance sheetincome statementcash flowdividendequityassetliabilitycapitalinvestmentreturn on investmentyieldpercentageratiofractioninteresttaxinflationdeflationbudgetforecastprojectionvaluationmarket sharecompetitionwholesaleretailcommercetradebusinessenterprisecorporationventuresolvencyliquiditybankruptcydeficitsurplusauditledgertransactioninvoicereceiptoverhead costvariable costfixed costbreak even pointscalabilityefficiencyproductivityprofitability