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.