gross profit margin

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Related to Gross Margins: profit margin, Net Margins

Gross profit margin

Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold.

Gross Profit Margin

A measure of how well a company controls its costs. It is calculated by dividing a company's profit by its revenues and expressing the result as a percentage. The higher the gross profit margin is, the better the company is thought to control costs. Investors use the gross profit margin to compare companies in the same industry and well as in different industries to determine what are the most profitable. It is also called the profit margin or simply the margin.

gross profit margin

A measure calculated by dividing gross profit by net sales. Gross profit margin is an indication of a firm's ability to turn a dollar of sales into profit after the cost of goods sold has been accounted for. Also called gross margin, margin of profit. Compare net profit margin. See also return on sales.
References in periodicals archive ?
But firms with substantial gross margins, such as those with a 30% gross margin, only need to increase sales by about 3% to offset a 1% decrease in price.
Careful planning and forecasting are important tools so that levels of production and stock are enough to meet demand but not so high that the businesses have to offer a discount on unsold goods or throw out perishable stock after its sell-by-date, as this will also adversely impact gross margins.
Maximizing gross margins requires focus on the right drivers and alignment of these objectives by the senior management team to the front-line people closest to the action.
As a result, gross margins held steady year over year.
Subsidiaries of Foreign Companies before the Oversight Sub-Committee of the Ways and Means Committee, July 10, 1990 (testimony indicating that while some foreign controlled companies have adequate gross margins, they have excessive "below the line" expenses that require adjustments to the gross margin to reach appropriate levels of net profitability).
Such forward-looking statements include, but are not limited to, statements regarding (i) the amount of revenue and gross margin to be reported for the quarter ended December 31, 2006, (ii) the amount of non-cash interest expense to be reported for the quarter ended December 31, 2006, and (iii) the expected date of reporting financial results for the quarter ended December 31, 2006.
The Company's ability to attract and retain key management, sales and technical staff, and to successfully manage its technical employee resources, which is key to maintaining gross margin on services revenue.
Mercent's on-demand platform, Mercent Retail, increases revenue and gross margins by promoting the right products with the right offers in the right online channels.
Evergreen Solar is reaffirming its previously issued financial guidance for 2006 quarterly revenue and gross margin for both its Marlboro and EverQ factories.
Navaratnam continued, "We will continue to invest in R&D and technology initiatives while focusing on expanding our customer base and increasing revenues and gross margins.
Due to its strong presence in North America, where average gross margins are lower than in other regions, Reebok carries a significantly lower gross margin than the Group average.
In addition, gross margins are expected to be approximately 43 percent, compared to the previous guidance of 46 to 48 percent.