The profit margin



Example: Profit margin measures percentage of profit from total revenue

Definition


"The profit margin" refers to the percentage that shows how much profit a business makes from its total revenue after all expenses are deducted. It is a key indicator of financial health, revealing the efficiency and profitability of an enterprise.

Etymology


The term "the profit margin" combines "profit," from Latin 'proficere' meaning 'to advance' or 'to make progress,' and "margin," from Latin 'margo,' meaning 'edge' or 'border.' Originally, margins described the edge of a page, but in business, it metaphorically represents the space between cost and selling price. Did you know that the concept of margin has been used since the Middle Ages to describe a safe or reserved space?

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"The profit margin" appears in the Vocaplus list "English - Entrepreneurship - (A1-C2) - set 1", containing 110 commonly used words.
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