Gross Margin (Noun)
Meaning
The ratio gross profits divided by net sales.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's gross margin was 25%, indicating a healthy balance between revenue and production costs.
- Improving the gross margin ratio is crucial for businesses looking to increase profitability and competitiveness.
- The analyst calculated the gross margin by dividing the gross profit by the net sales revenue, resulting in a ratio of 30%.
- A higher gross margin ratio typically indicates that a company has a competitive advantage or efficient operations.
- The gross margin ratio is an essential metric for investors and stakeholders to evaluate the financial performance of a business.