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.
Business income total
- costsAmounts required to pay
- net incomeProfit after all deductions
- EBITDAProfit before major deductions
- markupAdded percentage for profit
overhead · earnings · P&L · break-even · pricing · ROI · return on investment · gross
Maximizing efficiency or performance
- cost-cuttingReducing expenditures deliberately
- streamliningMaking more aerodynamic or efficient
- leanLacking fat; incline
- automationSelf-operating system design
productivity · process improvement · economies of scale · variable costs · fixed costs · scalability · throughput
Standing among competitors
- pricing powerControl over what you charge
- competitive advantageFactor enabling market outperformance
- rivalsThose who compete
- undercutSell cheaper than rivals
race to bottom · price war · market share · industry standards · peer comparison · benchmarking · comparative analysis · outperform
Measurable performance benchmarks
- performance metricsQuantifiable measures of effectiveness
- gap analysisComparing actual to desired
- trend analysisExamining directional data shifts
- varianceSpread around the mean
forecasting · liquidity · solvency · quarterly results · year-over-year
revenue
Business income total
- costsAmounts required to pay
- net incomeProfit after all deductions
- EBITDAProfit before major deductions
markup · overhead · earnings · P&L · break-even · pricing · ROI · return on investment · gross · net
optimization
Maximizing efficiency or performance
- cost-cuttingReducing expenditures deliberately
- streamliningMaking more aerodynamic or efficient
- leanLacking fat; incline
automation · productivity · process improvement · economies of scale · variable costs · fixed costs · scalability · throughput
market position
Standing among competitors
- pricing powerControl over what you charge
- competitive advantageFactor enabling market outperformance
- rivalsThose who compete
undercut · race to bottom · price war · market share · industry standards · peer comparison · benchmarking · comparative analysis · outperform · differentiation
KPIs
Measurable performance benchmarks
- performance metricsQuantifiable measures of effectiveness
- gap analysisComparing actual to desired
- trend analysisExamining directional data shifts
variance · forecasting · liquidity · solvency · quarterly results · year-over-year
- publishing financebook sales, production costs, distribution costs, advances, gross receipts
- business financeaccounting, balance sheet, revenue stream, budget, cash flow
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- finance termsbudget, credit, debt, income, revenue
- investingstocks, stock, bonds, investing, investor
- market economicsmonopoly, oligopoly, perfect competition, duopoly, monopsony
profit marginslosses
Things subtracted from standing
net losses · operating losses · deficits · red ink · financial losses
profit marginsgross revenue
Total earnings before expenses
total sales · turnover · revenue · sales volume · cost of goods sold
profit, margin, profits, profitable, marginal, margins, nonprofit, profitless, marginalize