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

As a result, the average restaurant profit margin now hovers between a precarious 3% and 5%, and industry data suggests that up to 42% of restaurants are currently struggling just to stay in the black. — Robert Messer, Forbes.com, 31 July 2026

Despite the second quarter’s drop in sales, the company’s various reset measures and financial discipline did improve its profit margin. — Cathrin Schaer, Footwear News, 31 July 2026

Tesla also reported a profit margin decline and high capital expenditure, sending its stock down 15%. — Eva Roytburg, Fortune, 23 July 2026

Laurie Styron, chief executive of CharityWatch, said there can be an incentive for Croom’s company to produce fewer or less-quality meals to have a higher profit margin. — Andrew Khouri, Los Angeles Times, 22 July 2026

Rhymes for profit margin

• arjun