Translation guide
In Japanese, expressing 'profit margin' depends on whether you mean the ratio of profit to sales (often expressed as a percentage) or the absolute amount of profit. The most common business term is 利益率 (riritsu), but other expressions like 利幅 (rihaba) or 粗利率 (arari ritsu) are used in specific contexts.
The ratio of profit to revenue, often expressed as a percentage. This is the most common meaning in business and finance.
The standard term for profit margin as a percentage. It can be used for various types of profit (gross, operating, net) by adding modifiers.
The profit margin on this product is 20%.
We need to improve our profit margin.
Specifically refers to gross profit margin (gross profit divided by sales). Used in retail and manufacturing.
It's tough if the gross profit margin falls below 30%.
Operating profit margin, used in financial statements and corporate analysis.
The operating profit margin improved year-on-year.
Net profit margin, the percentage of revenue remaining after all expenses. More technical.
Few companies have a net profit margin exceeding 5%.
The difference between selling price and cost, often expressed as a monetary amount rather than a percentage. Common in sales and retail.
Refers to the spread or margin between cost and selling price, often in absolute terms. Can also be used for percentage margins in some contexts.
This product has a thin profit margin.
Profit from the difference between buying and selling prices, often used in trading or arbitrage contexts.
Loanword from English 'margin', used in business contexts for both percentage and absolute margins. Common in finance and retail.
The amount added to the cost price to determine the selling price, often expressed as a percentage markup.
利益率 (riritsu) is a percentage, while 利幅 (rihaba) often implies an absolute amount, though it can also refer to percentage. Use 利益率 when discussing financial ratios; use 利幅 when talking about the spread on individual products or transactions.
A business with a high profit margin (percentage)
A product with a large profit margin (absolute difference)
The direct translation 'プロフィットマージン' is not commonly used in Japanese. Stick to the terms above for natural communication.
We focus on selling products with high profit margins.
為替の差益で利益を上げる。
Make a profit from exchange rate margins.
この取引のマージンはいくらですか？
What's the margin on this deal?
原価に2割の上乗せをして販売価格を決める。
We determine the selling price by adding a 20% margin on top of the cost.