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
Gross profit for the quarter was $2.03 million, with a gross profit margin of 64%, compared to $1.42 million and a 68% margin in the previous year.
—
Quartz Intelligence Newsroom, Quartz, 13 Feb. 2025
Where reciprocal tariffs could hit Americans’ pocketbooks hardest Unsurprisingly, the tighter the profit margin, the likelier a company is to pass on extra costs to consumers.
—Elisabeth Buchwald, CNN, 11 Feb. 2025
For the year to date, the hospital is showing a 3.4 percent operating profit margin and net income of $401,531.
—Contributed Content, Twin Cities, 7 Feb. 2025
Factors that drove changes in Wheaton’s stock over the last year
Some of the increase of the last year is justified by the 38% year-over-year rise in revenue in Q3 of 2024 to $308 million, and the maintenance of a high gross profit margin.
—Trefis Team, Forbes, 23 Jan. 2025
See all Example Sentences for profit margin 
Examples are automatically compiled from online sources to
show current usage.
Read More
Opinions expressed in the examples do not represent those of Merriam-Webster or its editors.
Send us feedback.
Quartz Intelligence Newsroom, Quartz, 13 Feb. 2025
Where reciprocal tariffs could hit Americans’ pocketbooks hardest Unsurprisingly, the tighter the profit margin, the likelier a company is to pass on extra costs to consumers.
—Elisabeth Buchwald, CNN, 11 Feb. 2025
For the year to date, the hospital is showing a 3.4 percent operating profit margin and net income of $401,531.
—Contributed Content, Twin Cities, 7 Feb. 2025
Factors that drove changes in Wheaton’s stock over the last year
Some of the increase of the last year is justified by the 38% year-over-year rise in revenue in Q3 of 2024 to $308 million, and the maintenance of a high gross profit margin.
—Trefis Team, Forbes, 23 Jan. 2025
See all Example Sentences for profit margin
Dictionary Entries Near profit margin
Cite this Entry
“Profit margin.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/profit%20margin. Accessed 21 Feb. 2025.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
Share