Gross Profit Margin (Noun)
Meaning
(finance) the net sales minus the cost of goods and services sold.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's gross profit margin increased significantly after they renegotiated their supply contracts and reduced their production costs.
- Analysts closely watch a company's gross profit margin to gauge its pricing power and ability to maintain profitability.
- A high gross profit margin indicates that a company has a strong competitive advantage and can maintain its market share.
- The gross profit margin of the retail industry is typically lower than that of the technology sector due to higher overhead costs.
- The company's decision to outsource its manufacturing operations helped to boost its gross profit margin and improve its overall financial performance.