profit margin

noun

: the difference between the cost of buying or making something and the price at which it is sold

The company has one of the highest/lowest profit margins in the industry.

Examples of profit margin in a Sentence

Recent Examples on the Web

According to the New York Times, Atlantic Industrial Coatings submitted a bid that charged 20 percent of profit margin, far exceeding the usual profit margins for other federal contractors which range from six percent to 12 percent. — Philip Wang, Time, 6 July 2026

The Bloomberg 500 Index follows the same pattern as the S&P, remaining at a steady 12% profit margin over the same period of time. — Sasha Rogelberg, Fortune, 6 July 2026

So the profit margin in a typical service firm tends to sit in the single digits, a world away from the fat margins a software company enjoys. — Dara-Abasi Ita, Forbes.com, 4 July 2026

The shortfall relative to demand has given the sector atypically dependable pricing power that has boosted profit margin projections and undergirded equity performance as a result. — Tobias Burns, CNBC, 24 June 2026

Rhymes for profit margin

• arjun