Profit Margin

Definitions

1. Profit expressed as a percentage of revenue, showing how much of each dollar remains after costs at the relevant level are removed. The exact meaning depends on whether gross, operating, or net profit is being discussed.

   In plain English: The percentage of revenue that remains as profit.

   Example: "Profit margin improved after the company cut discounting and renegotiated infrastructure costs."

Related Terms

• Contribution Margin
• Cost of Goods Sold
• Cost of Revenue
• Gross Margin
• Break-Even
• Operating Leverage
• Operating Margin
• Variable Cost