profit margin

Definition

Net profit after taxes divided by sales for a given 12-month period, expressed as a percentage.

Use profit margin in a sentence

The profit margin was in a bad state and I knew we had to make some changes in our company.

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You should always look to sell the items that have the most profit margin to maximize your potential earnings if you can.

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The profit margin was significantly higher than last quarter, this was because of the increased production from the legal department.

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net margin profit ratio