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profit margin
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
Examples
The company managed to increase its profit margin by reducing operational costs.
We need to find a way to widen our profit margin if we want to survive this quarter.
Rising raw material prices are starting to squeeze our profit margin.
I wonder if we can maintain a healthy profit margin while offering these discounts.
The luxury brand maintains a massive profit margin on its handbags.
Our net profit margin is much lower than the industry average.
If we lower the price too much, the profit margin will disappear entirely.
The new software has significantly improved our overall profit margin.