profit margin
Plural
profit margins
1
the difference between the earnings and the costs in a business
- The company's profit margin increased significantly after implementing cost-saving measures and streamlining operations.
- A higher profit margin allows businesses to reinvest in growth initiatives and reward shareholders with dividends.
- Understanding your product's profit margin is essential for making informed pricing decisions and maximizing profitability.
- The retail industry operates on thin profit margins, requiring careful management of expenses and inventory.
- Analyzing competitors' profit margins can provide valuable insights into market trends and competitive positioning.
Synonyms: