profit margin decrease

USAGE SUMMARY

The phrase "profit margin decrease" is correct and usable in written English.
You can use it when discussing financial performance, specifically when referring to a reduction in the difference between revenue and costs. Example: "The company's profit margin decrease has raised concerns among investors about its long-term viability."

✓ Grammatically correct

Human-verified similar examples from authoritative sources

Similar Expressions

60 human-written examples

We reduce our EBITA estimates by around 60 basis points per annum across the forecast period with the gross profit margin decreasing from prior estimated by 90 basis points to 2021.

The Guardian - Business

The operating profit margin decreased 100 basis points to 16% and net income fell 5.1% to $158.4 million or $1.68 per share.

Forbes

Due to the global downturn, SMI's gross profit margin decreased several percentage points sequentially in the fourth quarter, while operating expenses increased because of research and development associated with the new 300 mm plant and the development of 90 nm technology.

Forbes

Challenges may manifest in a variation of common business operational metrics, such as decrease in revenues and profit margins, decrease in customer acquisition rates and the typical spend of a customer, or in an increase in employee dissatisfaction and turnover.

Forbes

Chrysler profit margins decreased to 7.1percentt from 9.5percentt, reducing operating profit by 7percentto to $1.3 billion.

The New York Times

As Apple expands its product lines to include cheaper products, like the iPad Mini and a rumored cheaper iPhone, its profit margins will decrease.

The New York Times - Tech

A dynamic implication of the work of Gary Becker (1971) is that trade openness, being a channel for increased competition, would drive down profit margins, and decrease the ability of employers to discriminate against women.

IZA Journal of Labor Policy

While recent price decreases indicate that there is still space for price reduction, our estimate that gross profit margin on sales decreased by 6 to 7% between 2010 and 2012 lends credibility to assertions by generic manufacturers that the ARV market in low income countries is under considerable price pressure.

Globalization and Health

Amazon's gross profit margins have decreased steadily in recent years, to about 24percentt, as the company has cut shipping costs and dropped prices.

The New York Times - Tech

Decliners included the Walgreen Company, which lost 46 cents, to $35.25, after posting a 10percentt increase in first-quarter profits, but saying its gross profit margins had decreased slightly from a year ago.

The New York Times

At the same time, many coal power plants are expected to close down in the near future, because the profit margins are decreasing rapidly.

Energy, Sustainability and Society

Expert writing Tips

Best practice

When discussing a "profit margin decrease", provide context by specifying the time period or factors contributing to the change. This makes your statement more informative and actionable.

Common error

Avoid simply stating a "profit margin decrease" without providing specific numbers or percentages. Always quantify the decrease to give your audience a clear understanding of the magnitude of the change.

Linguistic Context

The phrase "profit margin decrease" functions as a noun phrase that identifies a reduction in profitability. It serves as a subject or object to convey financial performance insights. The Ludwig AI confirms the phrase as correct and usable.

Expression frequency: Missing

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Ludwig's WRAP-UP

The phrase "profit margin decrease" correctly describes a decline in profitability, deemed grammatically sound by Ludwig. While it is a straightforward term, remember to provide context and quantify the decrease whenever possible to enhance clarity. Alternatives such as "decline in profit margin" or "reduction in profit margin" can offer slight variations in tone. As Ludwig AI confirms, this phrase is usable and relevant across professional contexts, focusing on financial reporting and analysis.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

decline in profit margin

Replaces "decrease" with "decline", offering a slightly more formal tone.

reduction in profit margin

Substitutes "decrease" with "reduction", providing a more direct and quantitative feel.

profit margin contraction

Uses "contraction" instead of "decrease", suggesting a shrinking or tightening of profit margins.

erosion of profit margin

Employs "erosion" to imply a gradual wearing away or loss of profit margin.

profit margin slip

Replaces "decrease" with "slip", indicating a slight and often unintentional drop.

narrowing of profit margin

Focuses on the margin becoming smaller, using the term "narrowing".

profit margin compression

Implies a squeezing or pressing down on the profit margin.

drop in profit margin

Uses "drop" as a more straightforward synonym for "decrease".

fall in profit margin

Similar to "drop", but can suggest a more significant or sudden reduction.

weakening profit margin

Describes the profit margin as becoming less robust or stable.

FAQs

How can I use "profit margin decrease" in a sentence?

You can use "profit margin decrease" to describe a situation where a company's profits are shrinking relative to its revenue. For example, "The company experienced a significant "decline in profit margin" due to rising production costs."

What are some synonyms for "profit margin decrease"?

Alternatives include "reduction in profit margin", "decline in profit margin", or "profit margin erosion". The best choice depends on the specific context and the nuance you want to convey.

What factors might cause a "profit margin decrease"?

A "profit margin decrease" can be caused by several factors, including increased operating costs, lower sales prices, increased competition, or a combination of these issues.

How is a "profit margin decrease" different from a loss?

A "profit margin decrease" means that profits are shrinking relative to revenue, but the company is still making a profit. A loss, on the other hand, means that the company's expenses exceed its revenue.