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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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.