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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
If quarterly reported gross profit margins are greater than or less than last year's actual annual gross profit margins, this is evidence of earnings management.
The budget can be enhanced to better explain variances by including additional items in the budget, such as: optimum capacity (in units), capacity utilization percentage, fixed cost of sales, fixed cost of sales per unit, variable cost of sales, variable cost of sales per unit, unutilized capacity cost, gross profit margin before unutilized capacity costs (the normal gross profit margin that the business would expect to achieve at optimum capacity utilization), and gross profit margin of unutilized capacity costs (the impact of unutilized capacity costs on the total gross profit margin).
Ability aims to achieve 10% in gross profit margin and Altek is expected to see gross profit margin stay at 15% this year.
In September 1995, price per barrel was $174.53, gross profit margin 44.1%, operating margin 13.4% and operating income per barrel 24.16.
'Gross profit margins in the Philippines were only slightly below year-ago level despite rising inflation rate and cost increases brought by the tax reform and the peso depreciation,' JFC said in its first quarter report.
Gross profit amounted to P1.9 billion in the first three months, a year-on-year decrease of six percent, while gross profit margins registered at 42.1 percent as compared to 48.3 percent during the same period last year.
In addition, ZTE expects to record significant increases in both first quarter gross profit and gross profit margins, as the company continued to focus on servicing higher-margin contracts.
INFLATIONARY PRESSURES: Gross profit margin was 15.2% in the quarter, an increase of 30 basis points versus14.9% last year, driven by the continuation of accelerated growth in the Towable segment.