Margin meaning in English

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Definition

a (paper) margin: a (paper) edge, border, side noun
You need to make the margins smaller on this document, so that more text will fit onto one page.
a (profit) margin: a (profit) ratio, difference; the difference between the money spent and the money made noun
If we move production to India, we can increase our profit margins as we won't have to pay so much money in wages or materials.

UK: Now children, don't write notes in the margin of your book.
US: Our profit margins could be better.

Examples

  • "Within 10 years, I predict profit margins in the millions."
  • "In general, the figures show that we've had kind of a productive and profitable year, and our EBIT indicates that we've actually surpassed our projected earnings by a considerable margin."
  • "Unfortunately, this new behavior did not interfere with their habitual paranoia regarding Delavigne's profit margins."
  • "Their profit margins are incredible, their net income for that quarter alone totaled more than 200 million!"
  • "If we are unable to sell this product, the overstock of perfumes could put a major dent in our profit margins."
  • "There is a reason that we continue to increase our profit margins at this company, and it is because we do not spend money carelessly."
  • "Philip has told me on numerous occasions that working with an OILS certified company would severely cut into our profit margins, which would not please our shareholders at all."
  • "Philip : I've done a lot of research, and I found that the margin costs alone involved in adopting this charter would kill our profits."
  • "Bruno : Philip, you're concerned about our bottom line and our profit margins, and I appreciate that as well."
Exercise 1
In the beginning of the dialogue, Philip tells Susie that would eliminate Delavigne's profit margins.
In the beginning of the dialogue, Philip tells Susie that adhering to the charter would eliminate Delavigne's profit margins.
adhering to the charter: This is the best choice here. Philip says: "the margin costs alone involved in adopting this charter would kill our profits". This means that once Delavigne "adopts" or "accepts" the charter, they will have to use legitimate manufacturing sources, which will be more expensive than their current manufacturers. They would therefore stop making a profit.
researching the charter: This is incorrect. "Researching" the charter would not cost any money. Philip speaks about the research he has already done, in order to arrive at his conclusion that "adopting the charter" would be expensive.
paying the fee to join the charter agreement: This is incorrect. Philip does not mention anything about charges to be paid for signing the charter. He speaks of "margin costs", which are the costs that will come as a result of Delavigne's hiring a company listed on the OILS charter.
the margin costs of refusing to accept the charter: This is incorrect. In fact, Philip says the opposite. He is afraid that the "margin costs" which will result from Delavigne accepting the charter will damage Delavigne's profits.
Exercise 2
Let's take a closer look at some financial vocabulary, ok?

Fill in the blanks below with terms used in Bruno's speech.

These are the fixed costs or expenses of running a business including rent, utilities, and taxes, etc.
"Our is high this year, since we expanded and moved to bigger offices".

This is a period of economic decline or recession.
"The housing market took a and many people were not able to sell their houses".

In a company, this term is the sum of all financial records of salaries, wages, bonuses, and deductions.
"The personnel is too high, we might need to cut some salaries".

Let's take a closer look at some financial vocabulary, ok?

Fill in the blanks below with terms used in Bruno's speech.

These are the fixed costs or expenses of running a business including rent, utilities, and taxes, etc.
"Our overhead 1 is high this year, since we expanded and moved to bigger offices".

This is a period of economic decline or recession.
"The housing market took a downturn 2 and many people were not able to sell their houses".

In a company, this term is the sum of all financial records of salaries, wages, bonuses, and deductions.
"The personnel payroll 3 is too high, we might need to cut some salaries".
1 overhead: In a financial context, "overhead" is the fixed costs of running a business, such as rent, utilities, etc. Bruno says "I'm pleased that our overhead remains relatively low despite our progressive expansion." This means that the company's operating expenses are still quite small despite the fact that it is growing progressively. In another context "overhead" can mean literally above one's head.
2 downturn: A "downturn" is a period of economic decline, for example: We are currently experiencing a downturn, and I doubt we will be able to expand this year. Bruno says that "despite the current economic downturn, I'm optimistic that this coming year will be good for us." This means that even though there is a period of slow economic growth (or even decline), he is confident that the Delavigne Corporation will perform well.
3 payroll: The "payroll" of a company refers to the cost of paying the salaries of a group of employees. Bruno says "We certainly have some important decisions to make regarding...personnel payroll." This means that the company needs to make some decisions about staff salaries. Note that "payroll" can also refer to a list of employees to be paid, with the amount due to each.

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