Management may use gross profit margin to calculate a break-even analysis. All information contained in our newsletters or on our website s should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. Gross income divided by net salesexpressed as ui percentage. Geoss company has figured out a way to reduce the costs of goods sold by five times its competitor. Our in-depth tools give millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions. Many definiition owners will use gross profit margin calculations to help them price their products, track changes over time, and even take a closer look at some of the various cost factors that go into the cost of goods sold number that is input into the calculation to arrive at the gross profit margin calculation.

I wondered what the gross profit margin was going to be and how it would effect our day to day dealings. When my boss evaluated sale and cost, he realized that his gross profit margin was very low so he started to find ways to increase it. The gross profit margin was substantial and this metric was mentioned during the weekly team meeting as a ratio to be referenced often. Show more usage examples Reproduction of all or part of this glossary, in any format, without the written consent of WebFinance, Inc.

Term of the Day. What remains from sales after a company pays out the cost of goods sold. To obtain gross profit margin, divide gross profit by sales. Gross profit margin is expressed as a percentage. Use gross profit margin in a sentence. Browse Definitions by Letter:.

Gross profit Meaning

Gross profit margin is calculated as Gross Profit divided by Revenue, and is expressed as a percentage. This ratio helps to determine how a business is able to. What is ' Gross Profit Margin ' Gross profit margin is a financial metric used to assess a company's financial health and business model by revealing the proportion of. Gross profit margin is a common ratio in financial statement analysis. Management can use gross profit margin internally as an aspect of their pricing structure or.