The profit margin
Example: Profit margin measures percentage of profit relative to revenue
Definition
"The profit margin" is a financial metric that measures the percentage of profit a company makes relative to its total revenue, indicating how much of each dollar earned is retained as profit after expenses are deducted.
Etymology
The term "the profit margin" combines "profit," originating from the Latin 'proficere,' meaning to advance or benefit, and "margin," from the Latin 'margo,' meaning edge or border. Together, they describe the 'edge' or amount of profit a business retains from its revenue.
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"The profit margin" appears in the Vocaplus list "English - Finance - (A1-C2) - set 1", containing 150 commonly used words.
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