profit margin

profit margin
The ratio of net income to net sales of a company expressed as a percentage.

For example, if a company has $10,000 net income and $100,000 net sales, then profit margin equals ($10,000 : $100,000) .10, or 10%.


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  • 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

  • profit margin — profit ,margin noun count the difference between how much money you get when you sell something and how much it costs you to buy or make it …   Usage of the words and phrases in modern English

  • 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 — 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… …   Financial and business terms

  • 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 — UK / US noun [countable] Word forms profit margin : singular profit margin plural profit margins business the difference between how much money you get when you sell something and how much it costs you to buy or make it …   English dictionary

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