profit margin
noun
Definitions
The ratio of net income to net sales of a company expressed as a percentage.
Example: 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%.
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Definitions
The ratio of net income to net sales of a company expressed as a percentage.
Example: 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%.