profit margins

Revenue minus costs

Profit margin is the percentage of revenue that remains after subtracting costs—a measure of how efficiently a business converts sales into profit.

Gross margin subtracts only production costs; net margin accounts for all expenses.

Their profit margins are razor-thin.

Companies with high margins have more cushion to absorb setbacks.

In the plural, margins often appears with modifiers: healthy margins, shrinking margins.

financial

revenue

Business income total

markup · overhead · earnings · P&L · break-even · pricing · ROI · return on investment · gross · net

efficiency

optimization

Maximizing efficiency or performance

automation · productivity · process improvement · economies of scale · variable costs · fixed costs · scalability · throughput

competitive

market position

Standing among competitors

undercut · race to bottom · price war · market share · industry standards · peer comparison · benchmarking · comparative analysis · outperform · differentiation

analysis

KPIs

Measurable performance benchmarks

variance · forecasting · liquidity · solvency · quarterly results · year-over-year

Categories
Opposites
financial performance

profit marginslosses

Things subtracted from standing

net losses · operating losses · deficits · red ink · financial losses

margin size

profit marginsbreak-even

No net gain

financial metric type

profit marginsgross revenue

Total earnings before expenses

total sales · turnover · revenue · sales volume · cost of goods sold

Family

profit, margin, profits, profitable, marginal, margins, nonprofit, profitless, marginalize

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Top 100,000
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