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 alleged the Group's factoring business has low gross profit margin and provides extremely long credit terms to non-factoring related business.
Now let's say that the owner fails to closely manage his gross profit margin and, either through a rise in cost of goods or a lowering of the price they get for their products or services, gross margin dips from 40% to 34%.
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.
The changes in the gross profit margin, expense ratio and effective tax rate produced a net profit margin of 3.
Gross profit margin declined slightly for the fourth quarter 1993 to 28.
These one-time costs, when combined with the lower gross profit margin will result in a net loss for the quarter.
In this environment, we are aggressively pursuing both sales and acceptable gross profit margins while budgeting expenses conservatively.
The gross profit margin for the nine month period decreased to 32.
Gross profit margin was 72%, up from 58% in Q1 2007, and down from 91% in Q2 2006
Gross profit margin was affected by the restructuring cost of $750,000 for the discontinuance of the photogrammetric operations in Brazil.
Revenues, gross profits, gross profit margin, operating income and operating income margin were also higher in 1991 than in 1990.
expects gross profit margins to remain about 36 percent to 38 percent, said Steven De Gennaro, vice president for finance.