gross margin
6
4.9
- noun
- /ɡroʊs ˈmɑːrdʒɪn/
- Specialized
:
margen bruto
- If we're right, our product margins will add 500 basis points to your company's gross margins within 12 months.
- percent gross margin
- 40% gross margin
- sales multiplied by gross margin
Ford can't even manufacture an electric vehicle with a positive gross margin.
- Ford can't even manufacture an electric vehicle with a positive gross margin.
- So, and you still have a growth in, in gross margin, which is wild.
Examples
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Yes, Macs sell in greater numbers than ever, and still maintain high gross margins.
Blog text (3) -
The firm's trailing twelve months' revenue amounts to $34.63 billion, and the gross margin is 41.89%.
Blog text (32) -
In the second column, sales cost of goods and gross margin were all increased by 5.0%.
Blog text (3) -
To be successful, fixed expenses must stay fixed, and the gross margin percentage must not fall.
Blog text (3) -
The mention of lower gross margins on the higher price point merchandise was a concern to some analysts.
Blog text (13) -
Further, we observe an expansion of 70 basis points in gross margin, which came in at 44.1%.
Blog text (21) -
The firm's trailing twelve months' revenue amounts to $18.91 billion and the gross margin is 33.08%.
Blog text (32) -
The company's gross margin increased significantly this year, reaching 45% of net sales.
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To calculate the gross margin, subtract the cost of goods sold from total sales revenue and then divide by net sales.
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Last quarter, our gross margin was lower than expected, impacting overall profitability.
Synonyms
92
5.5
The amount a seller keeps after costs, usually shown as a percent
42
3.6
Difference between the cost to make or buy something and its selling price shown as a percent
1
6.9
The percentage of sales that remains after paying the cost of making goods
1
4.1
The amount of money a company keeps from sales after paying for goods, shown as a percent of sales
1
3.9
The percent of sales that remains as money after paying costs
How High
- Specialized
6
4.9
- Specialized
92
5.5
Surface Forms
Morphology
Both constituents give clear clues: 'gross' (before deductions) + 'margin' (difference/percentage over cost) will allow a learner to infer a general sense of a company's margin before expenses. However, the precise accounting sense (relation to cost of goods sold and expressed as a percentage of net sales) is technical and not fully predictable from the words alone, so prior domain knowledge is needed.
Etymology
The term gross margin comes from two simple ideas: gross meaning the total before costs and margin meaning the small amount left at the edge. Imagine sales as a cake and the cost to make a product as the piece taken away; the margin is the slice you keep. That's why it means the part of each sale that becomes 'profit' before other costs, usually shown as a percent.