profit margin
Sales minus costs
Profit margin is the percentage of revenue remaining after costs are subtracted—a measure of how much a business keeps from each dollar earned.
A company with a 20% profit margin keeps twenty cents of every dollar after expenses.
Their profit margins have been shrinking due to rising material costs.
High profit margins indicate efficiency or pricing power; thin margins mean little room for error.
Business income total
- costsAmounts required to pay
- overheadLocated directly above
- markupAdded percentage for profit
- netFinal amount remaining
gross · break-even · earnings · pricing · valuation · turnover · operating · pretax
Maximizing efficiency or performance
- cost-cuttingReducing expenditures deliberately
- leanLacking fat; incline
- streamlineRemove unnecessary elements
- pricing strategyMethod for determining costs
efficiency · productivity · competitive advantage · scalability · economies of scale · value proposition · positioning · differentiation
Sales to end users
- wholesaleBulk sales to merchants
- manufacturingIndustrial product creation
- e-commerceInternet-based buying and selling
- hospitalityGenerous treatment of guests
pharmaceutical · tech · automotive · grocery · luxury goods · commodities · services · software
Proportion out of hundred
- ratioComparative numerical relation
- benchmarkStandard for comparison
- baselineStandard for comparison
- targetObject of pursuit
threshold · standard · indicator · gauge · metric · reference · yardstick · parameter
Increase in size
- improvementPositive change in quality
- expansionIncrease in scope
- increaseGrowth in amount
- erosionGradual wearing away
compression · squeeze · upturn · decline · recovery · volatility · sustainability · stability
revenue
Business income total
net · gross · break-even · earnings · pricing · valuation · turnover · operating · pretax · after-tax
optimization
Maximizing efficiency or performance
- cost-cuttingReducing expenditures deliberately
- leanLacking fat; incline
- streamlineRemove unnecessary elements
pricing strategy · efficiency · productivity · competitive advantage · scalability · economies of scale · value proposition · positioning · differentiation · undercut
retail
Sales to end users
- wholesaleBulk sales to merchants
- manufacturingIndustrial product creation
- e-commerceInternet-based buying and selling
hospitality · pharmaceutical · tech · automotive · grocery · luxury goods · commodities · services · software · hardware
percentage
Proportion out of hundred
target · threshold · standard · indicator · gauge · metric · reference · yardstick · parameter · average
growth
Increase in size
- improvementPositive change in quality
- expansionIncrease in scope
- increaseGrowth in amount
erosion · compression · squeeze · upturn · decline · recovery · volatility · sustainability · stability · fluctuation
- ratestax rate, interest rate, exchange rate, mortgage rate, loan rate
- financial analysisnet income, EBITDA, ROI, operating income, earnings
- investment analysistechnical analysis, valuation, financial modeling, investment research, stock valuation
- businesscompany, corporation, firm, enterprise, commerce
- retailretail sales, Amazon, marketplace, clearance, sale
- business financeaccounting, balance sheet, revenue stream, budget, cash flow
profit margingross revenue
Total earnings before expenses
total sales · sales volume · revenue · turnover · market share
profit, margin, profits, profitable, margins, nonprofit, profitless, unprofitable, profiting