gross profit margin

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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 ?
As you can see in the variance column, there's a gross profit variance of -$40,000 and a gross profit margin variance of -5.
7 per cent to R 2,08bn, with the consolidated gross profit margin increasing from 45,4per cent to 46,3 per cent due to strong improvements at I&J, Spitz and Indigo.
Ability aims to achieve 10% in gross profit margin and Altek is expected to see gross profit margin stay at 15% this year.
5 percent in our ocean transportation gross profits in the first quarter of 2008 was driven by double-digit volume growth and price increases, offset partially by a decline in gross profit margins.
Gross profit margin was 72%, up from 58% in Q1 2007, and down from 91% in Q2 2006
9 percent in the third quarter of 2006 resulted from an increase in gross profit margins, offset by a slight decrease in volume.
Figure 2 Gross Profit Margins of Taiwan's Four Largest Notebook PC ODM Providers, 2001 - 3Q 2005
we expect this acquisition to enable us to enhance our profitability through improved gross profit margins and synergistic benefits," said McCann.
The improvement in gross profit margins and overall operating results in the quarter stemmed mainly from lower unit costs and a more profitable mix of domestic and international sales, as well as lower operating expenses; domestic sales prices per unit are higher than those for international sales.
The higher earnings forecasts mainly reflect the increase in the sales forecast and an improvement in the gross profit margin at projects.
The revised earnings estimate is due to a decline in retail gross profit margins, primarily reflecting inadequate execution in pricing across the Company's retail operations; depressed wholesale gross profit margins principally relating to manufacturer promotional spending; and higher than expected acquisition integration costs.
Thompson, the Company's CFO, stated, "The third quarter saw a substantial increase in sales, however our gross profit margins were lower than last year.