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gross profit margin

   Also found in: Dictionary/thesaurus, Acronyms, Encyclopedia, Wikipedia, Hutchinson 0.06 sec.
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 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.


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If gross profit margin is 25%, the farm needs to generate just $242,575.
Family expense by Dairy Today
The current second quarter gross profit margin increased in the consumer, industrial and contract manufacturing distribution channels, while gross profit margins remained unchanged in the food service and export distribution channels when compared to the gross profit margin for those channels for the second quarter of fiscal 2006.
John B. Sanfilippo & Son, Inc. News Release by Business Wire
Our Transportation gross profit margin increased to 18.
C.H. Robinson Reports Fourth Quarter and Annual Results by Business Wire
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