profit margin

Related Terms
Ratio of profit after taxes to cost-of-sales, often expressed as a percentage. It is one of the measures of the profitability of a firm, and an indicator of its cost structure. Formula: After-tax profit x 100 รท cost of sales.

Use 'profit margin' in a Sentence

To continue with trade, they had to first distinguish the profit margin, so they could have more knowledge about profitability.
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The profit margin was quite large considering the amount of fixed costs on this project which indicated the high demand was to thank.
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You should always try and shoot for the highest profit margin you can when you are trying to offload a product.
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