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translations for
profit margin
Definition of profit margin
The ratio of
net income
to
net sales
of a
company
expressed as a
percentage
Examples
If a company has $10,000 net income and $100,000 net sales, then the
profit margin
equals ($10,000 : $100,000) .10, or 10%.
Related words
net profit margin
make a profit
margin of profit
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