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
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Growth investors used to the Rule of 40 — a software metric that posits a company's revenue growth rate and profit margin should equal at least 40% — are fleeing tech for health-care and consumer companies, among others, that still have strong organic growth.
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Jim Cramer, CNBC, 8 June 2026
But, because gas is among its lowest-margin products, the company’s overall profit margin gets squeezed.
—David Goldman, CNN Money, 31 May 2026
According to documents reviewed by the Times, the company charged a 20 percent profit margin on the project, well above the 6 to 12 percent range that National Park Service officials considered typical for similar federal construction contracts.
—Daniel Cassady, ARTnews.com, 28 May 2026
The analysis found that the typical profit margin of federal construction contracts of a similar nature is around 6 percent to 12 percent, The New York Times reported.
—Adam England, PEOPLE, 28 May 2026
See All Example Sentences for profit margin
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Jim Cramer, CNBC, 8 June 2026
But, because gas is among its lowest-margin products, the company’s overall profit margin gets squeezed.
—David Goldman, CNN Money, 31 May 2026
According to documents reviewed by the Times, the company charged a 20 percent profit margin on the project, well above the 6 to 12 percent range that National Park Service officials considered typical for similar federal construction contracts.
—Daniel Cassady, ARTnews.com, 28 May 2026
The analysis found that the typical profit margin of federal construction contracts of a similar nature is around 6 percent to 12 percent, The New York Times reported.
—Adam England, PEOPLE, 28 May 2026
See All Example Sentences for profit margin
Cite this Entry
“Profit margin.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/profit%20margin. Accessed 14 Jun. 2026.
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