# 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 ?
We partition the data each year by signs of each company's "unmanaged" forecast error in the first quarter, which is a measure of what the forecast error would have been had the company used last year's gross profit margin. If unmanaged EPS is below analysts' forecasts (that is, the forecast error is negative) in the first quarter, then one would expect managers to bias their subsequent interim quarterly gross profit margin estimates upward (that is, income-increasing earnings management), causing managed forecast errors to be less negative (or more positive) than unmanaged forecast errors.
As for the fourth quarter and due to soaring sales of Apple products, Cheng Uei is expected to witness growth in revenues, profits, and gross profit margin.
The higher the gross profit MARGIN, the larger the stream.
Gross profit for the period was AED643.9mn, down 9.6 per cent Y-o-Y, for a gross profit margin of 16.4 per cent, against 17.1 per cent a year ago.
In a familiar example, he suggested a 67% markup--that is, multiplying direct costs by 1.67--to end up with a gross profit margin of 40%.
'We need to take the risk out of the equation where we can.' Shares in Eidos closed down 3 3 /4p at 133p last night on the results, which saw turnover up 30 per cent to pounds 151.5 million with a gross profit margin of 59 per cent.
The company's gross profit margin for the quarter decreased to 48.4%, down from 54.2% in 2000, primarily due to a non-recurring 4th quarter charge related to the disposal of certain hop inventories and the cancellation of certain hop future contracts.
Gross profit margin for the quarter was 40.3%, compared to 45.5% in the year-ago quarter, due to higher direct costs associated with increased levels of systems integration business.

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