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 ?
The Article concluded that the Company has higher than industry average profit margin by comparing the Company's gross profit margin with a PRC company, based on which the Article alleged the Company seriously exaggerated its gross profit margin level.
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.
For example, the Company's expectations for small improvements in its gross profit margin and increased earnings are dependent upon many factors including component costs, competitive pressure, and currency fluctuations.
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.
We implemented a number of steps during the first quarter to improve gross profit margin.
Strong Quarterly Growth in Gross Profit Margin Following Integration of Recent Acquisitions
The completion in October 1992 of installation in all stores of the point-of-sale register information system with scanners was another important element of our gross profit margin strategy.
9 percent in the third quarter of 2006 resulted from an increase in gross profit margins, offset by a slight decrease in volume.
In addition, the Company reports a 165% increase in gross profit margins from $422K in 2004, to $1.
21 /PRNewswire/ -- During Arrow International's (NASDAQ-NMS: ARRO) annual meeting of shareholders yesterday in Reading, Marlin Miller, president and chief executive officer, told shareholders that net income growth should exceed sales growth for the year due to expanding gross profit margins.
This represents a reduction in net loss of 72 percent and reflects a substantial increase in gross profit margins from the company's new generation of multi-system video products and significant reductions in operating costs.