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

Most of the profit margin for that company is skimmed off by Jeff Bezos [Amazon’s founder and executive chairman] in the form of cloud rent. —Morgan Meaker, WIRED, 9 Apr. 2024

The studios’ profit margin is on a par with last year. —Nick Vivarelli, Variety, 3 Apr. 2024

Inventories fell 7% in the quarter, with operating profit margin reaching 3.9%, up from 1.3% the year before. —Jonas Ekblom, Fortune Europe, 27 Mar. 2024

The beleaguered company said its commercial airplane unit’s operating profit margin would plunge to around -20%. —Chris Isidore, CNN, 20 Mar. 2024

Tesla faces headwinds from competition in the EV market from legacy automakers and a consumer shift away from full EVs toward hybrids; these factors have forced Tesla to cut prices sharply, eroding its profit margin. —Michael Hiltzik, Los Angeles Times, 31 Jan. 2024

Sanofi’s rebrand comes at a time when the company is under pressure to prove to investors why its strategy involving big spending on its drug pipeline (while slashing its 2025 profit margin target) could be good. —Prarthana Prakash, Fortune Europe, 10 Jan. 2024

With the Hollywood strikes in the rearview mirror, Netflix reported a blockbuster quarter, with subscribers surging, and its profit margin staying strong. —Alex Weprin, The Hollywood Reporter, 23 Jan. 2024

But the result has been a steady erosion of its once-hefty profit margin. —Esha Dey, Fortune, 13 Jan. 2024