Profit Margin
/ˈprɒfɪt ˈmɑːrdʒɪn/
Definitions
- (n.) The percentage or ratio representing the difference between the cost of producing goods or services and their selling price, indicating profitability; often used in financial and contractual contexts to assess economic benefit.
The contract included a clause guaranteeing the contractor a minimum profit margin of 15%.
Forms
- profit margins
Related terms
See also
Commentary
Profit margin is a critical metric in drafting and interpreting contracts to ensure parties understand profitability expectations and financial obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.