Profit Margin (Noun)
Meaning
The ratio gross profits divided by net sales.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's profit margin increased significantly after they reduced their production costs and optimized their supply chain.
- A high profit margin is often a sign of a well-managed business with a strong competitive advantage.
- The profit margin of the new product was lower than expected due to higher-than-anticipated marketing expenses.
- To improve their profit margin, the company decided to focus on selling higher-priced premium products.
- The profit margin of the company's e-commerce platform was significantly higher than that of their brick-and-mortar stores.