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 ?
2010-2015 China Rail Cost Price Production Value Gross Margin Analysis
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).
Bank comparable sales to continue to be down throughout the first half of the year with improvement in the second half and gross margin to increase for the year but follow a similar pattern to sales.
Although these wholesale sales resulted in the overall distribution gross margin percentage decreasing from 19.
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.
Gross margins in the first two months of the fourth quarter were several percentage points lower than the prior year, and slightly lower than in the previous quarter of 1992.
Gross margins are expected to be in the 47-48 percent range in the third quarter of 1992, compared to 49.
We believe this will result from an increasing mix of service revenues, improving gross margin on service revenue and improving financial performance of our recently opened offices.
Mercent's on-demand service, Mercent Retail, offers retailers control over product merchandising and promotions within third-party online channels, and the ability to measure online advertising performance across these channels according to key retail metrics such as per-product gross margins.